Davy Morning Equity Briefing
Nov 06, 2026
Buzzi Spa
FY26 guidance reiterated
Buzzi’s Q3 update points to mixed trading across key markets, with underlying revenue broadly stable. Management has maintained FY26 EBITDA guidance at €1.1-1.2bn, in line with consensus of c.€1.17bn, with current trends expected to broadly persist through year-end. Overall, we view the update as consistent with current expectations, with no material change to the earnings outlook into year-end.
DraftKings
Significant investment behind its prediction offering
The key focus from DraftKings’ update is a very significant downgrade to FY26 aEBITDA, which it primarily attributes to investment in its prediction markets offering. It has also issued FY27 guidance which is below consensus and our expectations. The quantum of the downgrade and the fact that there is potentially a binary regulatory outcome for sports products in prediction markets will cause investor concern. DraftKings has outlined what it sees as very positive momentum in its prediction markets launch, which justifies this investment. However, the inherent uncertainty around achieving returns on this investment will weigh.
IAG
Resilient quarter but operating at the low end of margin targets
IAG delivered a resilient quarter; however, operating profits at €1,726m (Davy: €1,863m, consensus: €1,810m) are below a moveable consensus number, with non-fuel unit costs impacted by disruption in the quarter. We think it is likely that full year operating margins will be at the low end of the 12-15% range, resulting in some small downgrades today in the mid-single-digit percentage range. The balance sheet remains very strong with 0.6x net leverage. That, and strong cashflows, enable the ongoing buyback.
