Jefferies sees improving prospects across European mid‑caps heading into the second half of 2026, pointing to stronger order intake, improving momentum and greater earnings visibility after a broadly positive second‑quarter reporting season. Positive Q2 surprises have supported material estimate increases across much of the coverage universe, prompting a reshuffle of DACH mid‑cap preferences. Redcare Pharmacy is now preferred at current valuation levels, while Bilfinger and Inficon remain the top picks for the second half.
Inficon has shown a strong recovery in operational performance this year after tariff uncertainty, foreign‑exchange headwinds and weakness in semiconductors. Improving industry conditions could create scope for further growth, with the durability of the company’s financial targets a key focus.
Systemair also stands out after adjusted EBIT rose 13% year‑on‑year and beat consensus by 4% in its fiscal first quarter. Broad‑based growth and rising exposure to data‑centre cooling add to the investment case, with AI‑related spending supporting demand.
Volex carries a Buy rating after delivering growth well ahead of expectations and raising full‑year guidance only four months into its financial year. Forecasts through fiscal 2029 were raised on the back of a stronger growth and earnings trajectory.
Acerinox remains another preferred name, with its price target raised to €22. The case rests on a more U.S.–focused earnings mix, capacity expansion and improving conditions in Europe.
Everplay offers a different type of upside through valuation. Strong engagement around upcoming releases supports the expected second‑half earnings ramp, with around 80% of forecast fiscal 2026 EBITDA weighted to H2. The shares trade at 6.5 times expected EBITDA, well below a historical average in the mid‑teens.
The investment firm has also become more selective after strong share‑price moves. DocMorris was downgraded to Hold after rising more than 80% this year, while Nagarro was also cut to Hold as Persistent’s €81‑per‑share takeover offer is expected to proceed.