Author: Fiona Craig

Kering SA (EU:KER) shares dropped more than 3% after Morgan Stanley lowered its recommendation on the stock, shifting its rating from “overweight” to “equal-weight” and trimming its 12–18 month price target to €320 from €330. The bank pointed to limited further upside following strong share price performance earlier in the year, which it believes is now largely reflected in the valuation.

The stock had reached a year-to-date peak of €320.50 on 12 January before falling around 16% by Monday. Since the start of the year, it has still outperformed peers including LVMH, Hermès and Richemont by roughly 300 to 1,700 basis points.

After surging 10.90% on 10 February—its largest single-day gain of the period—the shares gave back much of those gains during a sharp sell-off in early March, declining 5.04% and 6.35% on 2 and 3 March respectively.

Morgan Stanley’s discounted cash flow model suggests around 15% upside to the revised target price, though the bank no longer views this as sufficient to justify outperformance.

“Our DCF implies 15% upside to the shares, which no longer translates into relative outperformance,” the note stated.

Based on the bank’s updated 2028 earnings per share forecast of €15.97—down 4% from previous estimates but still 15% above the Visible Alpha consensus of €13.80—the stock is trading at about 17 times forward earnings.

The analysts expect group revenue to reach €18.3 billion by 2028, representing roughly 25% cumulative growth from €14.7 billion in 2025. Over the same period, operating margin is projected to expand from 12.5% in 2026 to 18.4% in 2028, while EPS is forecast to rise from €6.81 to €15.97.

The downward revisions were attributed to weaker-than-anticipated channel checks in the first quarter of 2026 and exposure to geopolitical tensions in the Middle East, which accounts for around 5% of group sales.

Morgan Stanley now expects Gucci, Kering’s largest brand, to post a 6.2% decline in the first quarter of 2026, compared with a previous estimate of a 5% drop. Gucci is projected to generate €5.95 billion in revenue in 2026, increasing to €7.67 billion by 2028.

In a more optimistic scenario, the bank values the shares at €480, assuming a strong revival cycle at Gucci and group operating margins reaching 25.9% by 2028. In contrast, the downside case sees the stock at €175, based on the risk that Gucci’s new direction fails to gain traction commercially. Options pricing suggests a roughly 28.9% probability that the shares exceed €320 over the next 12 months, versus a 17.1% chance of falling below €175.

Morgan Stanley highlighted two key triggers that could shift its stance more positively: continued organisational changes following the appointment of Luca de Meo as CEO in September 2025, and clearer evidence of a sustained turnaround at Gucci.

The analysts described Gucci’s situation as “a classic case where improving buzz is running ahead of the hard numbers,” adding that channel checks across European retailers show “early signs of improving brand buzz but little evidence yet of a meaningful commercial recovery.”

Wise plc (LSE:WISE) reported strong momentum across its core money transfer and account services, with quarterly cross-border volumes increasing 26% year-on-year to £49.4 billion and active customers rising 22% to 11.3 million.

Customer balances held within Wise accounts grew 37% to £29.4 billion, while underlying income for the quarter climbed 24% to £435.3 million. Growth was supported by increased adoption of account features and a notable rise in instant transfers, which improved by 10 percentage points.

For the full fiscal year 2026, Wise expanded its active customer base by 21% to 18.9 million, driving a 25% increase in annual cross-border volumes to £181.7 billion. Underlying income rose 18% to approximately £1.61 billion. The company also highlighted strong performance in its business segment and expects its underlying profit before tax margin to land toward the upper end of its 13% to 16% target range.

Wise confirmed it is progressing with plans for a dual listing, intending to shift its primary listing to Nasdaq while maintaining a secondary listing in London. The transition, which will involve reporting in U.S. dollars under U.S. GAAP, is designed to enhance visibility in the U.S.—its largest addressable market—and provide access to deeper capital pools, potentially strengthening its competitive positioning in global payments.

From an outlook perspective, the company is supported by strong financial performance, including robust growth, profitability, and solid cash generation. Positive sentiment around customer expansion and transaction volumes further underpins the investment case. However, valuation remains relatively elevated, with a price-to-earnings ratio of around 25.7 and no dividend yield, while technical indicators present a mixed picture, including negative momentum signals and an elevated RSI.

More about Wise PLC

Wise plc is a global financial technology company specialising in low-cost international payments and multi-currency account services for both individuals and businesses. Through its Wise Account and Wise Business offerings, users can hold and manage more than 40 currencies, send money internationally, and spend abroad. The company also provides infrastructure solutions that enable banks and enterprises to integrate cross-border payment capabilities into their own platforms.

Concurrent Technologies plc (LSE:CNC) reported another year of solid expansion in 2025, driven by rising demand for high-performance computing solutions in defence and other mission-critical sectors.

The company continues to secure long-term design wins with major global defence contractors across Europe and Asia-Pacific. Growth has been supported by increased manufacturing capacity in the UK and the addition of a new advanced facility in Los Angeles, strengthening its international footprint.

For the year ended 31 December 2025, revenue increased 14% to £45.9 million, while profit before tax rose 25% to £6.5 million. EBITDA grew 29%, and the business recorded a record £47 million in orders, providing strong visibility over future revenues. Performance was underpinned by steady progress in the core Products division and rapid expansion in the Systems segment, supported by design services and the company’s largest contract to date, valued at $6.2 million. Concurrent ended the year with £14.4 million in cash, positioning it to meet market expectations for 2026 despite broader macroeconomic uncertainty.

From an investment standpoint, strong financial performance—particularly in revenue growth and cash generation—supports the company’s outlook. However, technical indicators suggest some bearish momentum, and a relatively high price-to-earnings ratio raises valuation concerns. Recent corporate activity presents a mixed picture, with positive contract momentum offset by potential negative sentiment linked to a CEO share sale.

More about Concurrent Technologies

Concurrent Technologies plc is a UK-based designer and manufacturer of high-performance embedded computing systems. Its products include plug-in computer cards and integrated systems used in long lifecycle, mission-critical applications. Leveraging technologies such as Intel Xeon, Core, and Atom processors, and built to open standards like VPX and SOSA, its solutions are deployed across global markets including telecommunications, defence, aerospace, security, and scientific research, often in demanding operating environments.

Polar Capital Holdings plc (LSE:POLR) reported a strong increase in assets under management (AuM), reaching £30.6 billion as of 31 March 2026—up 8% over the quarter and 43% across the full financial year.

The growth was supported by £1.4 billion of net inflows during the quarter alongside solid investment performance, despite some modest fund closures. Inflows were broadly distributed across the firm’s strategies, with particularly strong demand for Global Technology and Artificial Intelligence funds. Additional contributions came from healthcare and other specialist strategies, while outflows were limited to select North American, Global Insurance, and Asian funds.

Chief executive Iain Evans noted that the firm entered 2026 with continued positive inflow momentum, which extended into April, although inflows softened in March amid heightened geopolitical tensions in the Middle East. He highlighted that increasing market volatility and rapid technological change—particularly driven by AI—are reinforcing the case for specialist active management, positioning Polar Capital to capture future opportunities. The company is scheduled to report full-year results on 1 July 2026.

From an outlook perspective, Polar Capital benefits from strong financial performance, effective cash flow management, and relatively low leverage, all of which support its investment case. Strategic progress and record AuM levels further strengthen its market position. Technical indicators suggest a neutral trend, with no clear short-term directional signals.

More about Polar Capital Holdings

Polar Capital Holdings plc is a UK-based specialist asset manager focused on active investment strategies. The firm manages a range of open-ended funds, investment trusts, and segregated mandates, with expertise spanning thematic and sector-driven approaches. Its key areas of focus include technology, healthcare, smart energy, and various regional and absolute return strategies, serving wealth managers and private banking clients across Europe and Asia.

Seraphim Space Investment Trust plc (LSE:SSIT) is preparing to raise fresh capital through the issuance of C shares, targeting both institutional and retail investors as it looks to capitalise on strong momentum and a growing pipeline of opportunities in the SpaceTech sector.

The proposed structure is designed to protect existing shareholders from net asset value dilution. C shares will initially operate as a separate class while capital is deployed, reducing cash drag, before converting into ordinary shares once investments are made.

The trust highlighted favourable long-term trends supporting the SpaceTech market, including declining launch costs, increased defence and climate-related demand, and rising infrastructure needs linked to telecommunications and artificial intelligence. Approaching its fifth year since listing, management pointed to strong share price performance, accelerating revenues across its portfolio, and a significant exposure to defence-related and dual-use technologies. The timing and scale of the fundraising will depend on market conditions and shareholder approval.

From an outlook perspective, the trust’s financial profile remains challenged by negative operating cash flow and valuation-driven earnings volatility, although it maintains a debt-free balance sheet. Technical indicators are more supportive, reflecting a sustained upward trend, though momentum signals suggest the shares may be approaching overextended levels. Valuation remains difficult to assess due to the absence of conventional metrics such as price-to-earnings and dividend yield.

More about Seraphim Space Investment Trust Plc

Seraphim Space Investment Trust plc is a London-listed investment vehicle focused on early-stage and growth-phase SpaceTech companies. It invests in private businesses with the potential to become global leaders across sectors such as climate, communications, mobility, and cybersecurity, leveraging the expertise and network of Seraphim Space Manager and its associated accelerator platform.

Halma plc (LSE:HLMA) has acquired California-based Surgistar Inc. for $90 million in cash, on a debt-free, cash-free basis, using existing financing facilities.

The acquisition will be integrated into Halma’s Healthcare division through its MicroSurgical Technology (MST) business, strengthening its position in ophthalmic surgical instruments. Surgistar specialises in precision products such as blades, cannulas, and trephines, and brings highly automated manufacturing capabilities that are expected to support consistent quality and scalable growth.

The deal enhances MST’s product portfolio while benefiting from its established global distribution network, aligning with Halma’s strategy of pursuing targeted bolt-on acquisitions in high-growth medical technology segments. By broadening its ophthalmic offering, the group aims to reinforce its competitive position in the global eye surgery market and expand the scale of its healthcare operations without placing strain on its balance sheet.

From an investment perspective, Halma continues to benefit from strong financial performance and positive sentiment around its strategic execution. However, its relatively high valuation and modest dividend yield may temper overall investor appeal.

More about Halma plc

Halma plc is a global group of companies focused on life-saving technologies across safety, environmental, and healthcare markets. Listed on the FTSE 100, the group employs more than 9,000 people in over 20 countries, delivering products and solutions that improve safety, address environmental challenges, and support advances in healthcare worldwide.

Marks Electrical Group plc (LSE:MRK), a nationwide e-commerce retailer of household appliances and consumer electronics, has upgraded its profit expectations following a stronger-than-anticipated end to the financial year.

For FY26, the company reported revenue of £108.5 million, alongside unaudited adjusted EBITDA of £2.65 million. Its balance sheet also strengthened, with net cash reaching £4.45 million at year-end—both metrics coming in ahead of previous guidance.

The business enters FY27 with positive trading momentum, supported by improved cash generation and continued operational efficiencies. Management expects this progress to translate into sustainable growth in both revenue and profitability, driven by disciplined margin management and the benefits of its vertically integrated, low-cost operating model.

Despite the improved financial footing, the company’s outlook remains mixed. Strong cash flow and low leverage provide a solid foundation, but technical indicators remain weak, and valuation concerns persist due to recent losses. A recent leadership transition and management’s confidence in second-half performance offer some encouragement, though broader market sentiment and valuation metrics continue to weigh on the investment case.

More about Marks Electrical Group Plc

Marks Electrical Group plc is a UK-based, technology-led online retailer specialising in major domestic appliances and consumer electronics. Founded in Leicester in 1987, the company has grown into a national e-commerce platform, offering over 4,500 products from more than 50 leading brands. It provides end-to-end services including delivery, installation, and recycling through its own branded logistics network.

SysGroup plc (LSE:SYS) delivered better-than-expected results for the year ended 31 March 2026, supported by a strong second-half performance and the contribution from its December 2025 acquisition of Saxis Group.

Full-year revenue increased 7.6% to £22.1 million, with momentum building in the latter half of the year. Organic revenue in the second half rose 7.0% year on year, while total H2 sales climbed 17.2% compared with the same period last year, reflecting both underlying growth and the impact of the acquisition.

Profitability also improved, with adjusted EBITDA expected to reach £1.2 million, up from £0.9 million and ahead of market expectations. The group ended the period with £7.7 million in gross cash and £2.7 million in net cash, even after funding the Saxis transaction. Management also pointed to early gains from the integration of artificial intelligence into sales processes and service delivery, helping to position the business for continued progress into FY27.

Despite these positives, the company’s broader outlook remains constrained by ongoing financial challenges, including continued losses and pressure on operating and free cash flow. Technical indicators also remain weak, with the share price trading below key moving averages and momentum signals negative. While recent contract wins and insider buying offer some support, they have yet to fully offset concerns around earnings quality and cash generation.

More about SysGroup

SysGroup plc is a UK-based provider of cloud, cybersecurity, and digital infrastructure services, primarily serving mid-sized organisations. The company offers end-to-end solutions designed to help businesses modernise, secure, and optimise their IT environments. With offices in Edinburgh, London, Manchester, and Newport, SysGroup operates close to key regional markets across the UK.