Davy Morning Equity Briefing
Apr 16, 2026
Entain
Good Q1 performance
Entain updated on Q1 trading this morning. Growth in the key Online division was 5% in the quarter, a good performance in the context of a negative year-on-year (yoy) impact from sports results. Importantly, it has reiterated its expectation of 5-7% Online growth for 2026 and remains comfortable with consensus expectations. Consistency of delivery has greatly improved at Entain; to this end, we believe valuation is too depressed.
easyJet
Trading update illustrates exposure
With H1 results due on May 21st, easyJet has issued an unscheduled trading update illustrating challenges that include a near-term weaker booking profile into fiscal Q3/Q4. Essentially, the fuel headwind from the geopolitical events in the Gulf is not being passed through in the near term with the booking curve shortened. Peak summer Q4 could see some improvement, but we expect a material reduction in consensus estimates, probably close to £100m for FY26 (£665m in FY25), with a high degree of uncertainty.
UK economy
UK economic growth far above expectations in February
UK gross domestic product (GDP) was far stronger than expected in February. While some elements of the results look noisy, especially construction which jumped 1% on the month despite heavy rainfall and downbeat private sector commentary, the strength of services output was quite broadly based. While household spending was supported by real wage growth last year, a more likely avenue for this year could be a reduced savings rate. Nonetheless, a slowdown in output in March and April looks likely due to war in the Middle East. With the UK economy growing below its potential, we see limited need for the Bank of England to increase interest rates this year provided the trend in underlying disinflation remains intact as 2026 progresses.
Irish economy
Transactions for new properties grew strongly again in February
Overall residential property prices decelerated in February and look set to exceed our Q1 forecast for an annual gain of 6.4%. However, it remains early in the year and our full-year 2026 forecast for an increase of 5.5% is still achievable. The number of new properties purchased by households grew strongly again in February; while still early days, this augurs well for our forecast that new dwelling completions this year will reach 43k.
