J P M O R G A N Today we publish our 2025 Investment Grade Mid-Year TMT Update, highlighting our views on the key themes across European markets and sectors that we expect to drive TMT spreads in the second half of the year. We provide a variety of trade ideas based on our current views on these items. We hope it proves useful to you; please do not hesitate to reach out should you have any further questions. Europe Corporate Credit - Technology, Media & Telecommunications Andrew Webb AC (44-20) 7134-0121 an ...

Telefonica has identified an opportunity to grow its defense business outside Spain as countries across Europe ramp up military spending, its executive chairman says https://t.co/aVDbo0lDXj ...

Core Viewpoint - The article compares Telefonica (TEF) and Telus (TU) to determine which stock is more attractive to value investors, highlighting TEF's stronger earnings outlook and better valuation metrics [1][3]. Valuation Metrics - TEF has a forward P/E ratio of 14.22, while TU has a forward P/E of 21.25, indicating that TEF is potentially undervalued compared to TU [5]. - TEF's PEG ratio is 0.83, suggesting a favorable valuation in relation to its expected earnings growth, whereas TU's PEG ratio is significantly higher at 5.05 [5]. - TEF's P/B ratio stands at 1.2, compared to TU's P/B of 2.08, further indicating TEF's relative undervaluation [6]. Earnings Outlook - TEF is noted for having an improving earnings outlook, which contributes to its higher Zacks Rank of 2 (Buy), compared to TU's Zacks Rank of 3 (Hold) [3][7].

Investment Ratings - European Real Estate sector is rated as "Sell" for Kojamo due to weak operating trends and high valuation [2] - Allianz has been downgraded to "Neutral" while AXA is preferred in the multi-line insurance sector [3] - Ryanair is reiterated as a "Buy" following a strong outlook for FY26 results [5][35] Core Insights - European Real Estate remains volatile, but M&A activity is increasing, with a 28% year-over-year rise in M&A volumes [2] - Allianz shares have increased by 22% since September 2024, but the stock is now trading at the high end of its historical valuation range [3] - Investors are focusing on high-quality names in the European Chemicals sector, with cautious sentiment towards Symrise and Croda [4] Summary by Sections Real Estate - M&A activity in European Real Estate is on the rise, with companies like Assura and Warehouse REIT being potential takeover targets [2] - Coverage trades at a significant 36% discount to NTA, compared to a 16% long-term average [2] Insurance - Allianz's earnings estimates for 2025 have been cut by 8%, leading to a reduced price target [3] - AXA is highlighted as a preferred multi-line insurance play due to its undemanding valuation and buyback potential [3] Chemicals - High-quality names such as Givaudan and Air Liquide are favored, while there is caution regarding Symrise and Croda due to destocking risks [4] Transportation - Ryanair's net profit estimate for FY26 has been increased by 3%, indicating a positive outlook [5] - The company is expected to benefit from share buybacks and the removal of ownership restrictions, supporting its inclusion in MSCI global indices [7]

Core Insights - Tenable announced the recipients of its Global Partner Awards during the fifth annual Tenable AssureWorld virtual partner conference, recognizing partners for their contributions to customer success in exposure management [1][2] - The awards included categories such as Global System Integrator of the Year awarded to IBM, Tenable OT Security Partner of the Year awarded to Siemens Energy, MSSP Partner of the Year awarded to Telefonica, and Global Technology Partner of the Year awarded to AWS [1] - Tenable emphasizes a partner-first approach, focusing on investing in and supporting channel partners to achieve collective success in cybersecurity [2] Company Overview - Tenable is positioned as the exposure management company, addressing cybersecurity gaps that can impact business value, reputation, and trust [4] - The company offers an AI-powered exposure management platform that integrates security visibility and action across various environments, including IT infrastructure and cloud [4] - Tenable serves approximately 44,000 customers globally, aiming to reduce business risk through effective exposure management [4] Partner Program - The Tenable Assure Partner Program provides partners with sales and marketing support, training, certification opportunities, and technical assistance to enhance their business capabilities [3] - The program is designed to help partners deliver exceptional exposure management and risk mitigation solutions [3]

Core Viewpoint - Telefonica (TEF) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Recent Performance and Outlook - For the fiscal year ending December 2025, Telefonica is expected to earn $0.33 per share, reflecting a -15.4% change from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Telefonica has increased by 1.5%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Telefonica to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].