European equities show a split single-name picture, with published research this week bullish on SAP and bearish on Volkswagen — and one camp of analysts overweight European banks (ex-UK) heading into Q2 earnings.
Researchers argue Volkswagen is a DAX laggard after soft Q2 numbers and a cut to its revenue forecast, leaving it exposed in the near term. On the other side, SAP's cloud business is flagged as a genuine bright spot: unexpectedly strong order intake and 9% revenue growth drove a positive market reaction, though two acquisitions did weigh on operating profit guidance.
The published bank overweight rests on a familiar stack: higher-for-longer rates supporting interest income, historically low bad loans, resilient investment banking and wealth fees, and steady dividends and buybacks. Analysts holding this view see it as an attractive risk-adjusted setup into earnings.
The broader read from these notes: European banks look supported by rates and capital returns, autos face guidance-cut headwinds, and software stands out on cloud demand.