TIC - Themes into 2Q, ITRK to Hold: EUROPE | Business & Employment Services

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TIC - Themes into 2Q, ITRK to Hold: EUROPE | Business & Employment Services

EUROPE | Business & Employment

Services EquityJulyResearch20, 2026

KEY STOCKS FEATURED INCLUDE:TIC - Themes into 2Q, ITRK to Hold

We preview 2Q reporting for the Testing names and highlight five potential TICKER RATING PRICE TARGET

themes that may be a focus: 1) O&G/Energy activity facing headwinds ERF FP UNPF €60.00

from full quarter impact from the Middle East conflict; 2) Continued BVI FP BUY €33.00

robust outlook for consumer/product testing; 3) Still waiting on broader ITRK LN HOLD 6,000.00p

biopharma recovery but lead indicators better; 4) 2H weighting to FY26 SGSN SW HOLD CHF100.00

margin progression; 5) Capital allocation in focus, with increased M&A/

buyback activity.

KEY CHANGES INCLUDE:

Mixed underlying organic growth trends expected through 2Q. Overall we expect robust TICKER RATING PRICE TARGET

underlying organic growth trends to have continued through 2Q forecasting 4-5.5% for our

ERF FP UNPF €60.00 (€48.00)

coverage names, stable to slightly easing sequentially (ex ERF). We expect solid activity trends

seen in Consumer, Industry and Assurance to have continued in 2Q, with some additional ITRK LN HOLD 6,000.00p

headwinds in Energy/O&G exposed areas from the impact from the Middle East, and some

continued contract rationalisation around the edges. We also expect broadly stable trends

in pharma with recovery not expected until later in the year, albeit for ERF we expect some

sequential improvement in growth as weather headwinds from 1Q are recovered.

Margin progression a focus, but expect 2H weighting again in 2026. We expect further

gradual progress on margins for the TIC names at 1H, but are mindful that phasing on