Davy Morning Equity Briefing
Jul 23, 2026
Irish banks
Bankinter Q2 26 – solid Irish operations results
Bankinter reported solid Q2 2026 results for its Irish business. Lending growth was strong on a year-on-year (yoy) basis, led by strong mortgage growth in H2 25, with some moderation in H1 26. Profitability remained resilient. Retail funds were disclosed for the first time following the launch of Avant’s deposit gathering strategy, marking an initial step in the long-term self-funding strategy. We expect the deposit offering to broaden over time as the franchise scales organically.
Howden Joinery
Solid H1 with more to come
Howdens’ H1 results confirm its enduring ability to produce solid results despite a persistently unforgiving operating environment. Confirmation of its full year outlook is also welcome. Looking ahead, we are excited by what DIY Kitchens adds, namely a growth lever and new route to market, a scalable platform and the exciting combination of arguably the best formats in the UK kitchen market.
Volution
Another excellent update prompts another earnings upgrade
Volution’s trading update confirms, as expected, another year of very impressive progress for the group. The group continues to advance, with healthy organic growth supplemented by attractive M&A — with AC Industries the most recent example of the latter. Given updated guidance, we expect to increase our existing EPS forecast for the year to end-July by circa 4%, which is an excellent outcome in the current environment. The stock has largely traded sideways recently (-2% year-to-date), but we believe there is decent upside to play for with no material valuation headwind.
hVIVO
H1 2026 trading update
hVIVO has issued a trading update for H1 2026. Earnings are in line with expectations. There has been an increase in commercial momentum with a significant expansion in the orderbook. The net cash position is stronger than expected. We are leaving our forecasts unchanged and we reduce our price target to 18p/share.
Givaudan
H1-26 EBITDA in line, with strong performance across Fragrance activities
Givaudan has delivered a good Q2 with like-for-like (LFL) sales growth of 4.3%, which was modestly ahead of consensus – growth was volume led and driven by strong execution in Fragrance & Beauty, where leading indicators remain positive. Overall, H1 adjusted EBITDA was in line with expectations. The inflationary outlook for raw materials is manageable. On first look, we see upside risk to our FY margin forecast of 23.6%, which should support a modest upward revision to our FY EBITDA forecast.
easyJet
Q3 impacted by Middle East conflict
easyJet has reported a Q3 headline PBT of £85m, down from £286m in the prior year. The Q3 result was impacted by the Middle East conflict, with a later booking profile and increased fuel costs leading to margin pressure on the airline side. RASK was down 3%, while fuel CASK was up 13%. Ex-fuel CASK was up 3%, in line with guidance. easyJet holidays showed resilience in the operating model, delivering PBT of £84m. Booked Q4 ticket yield is currently flat and load factor is 2ppts behind (improvement from 3ppts in May). The company has highlighted that there is a strong late booking environment, with bookings beyond the month of departure also beginning to improve, albeit still needing some price stimulation. For FY26, we forecast PBT of £114.3m (Visible Alpha (VA): £118m). We continue to be of the view that a takeover bid will succeed.
CVS Group
FY2026 trading statement
CVS has issued a trading statement for FY2026, reflecting results that are in line with our forecasts. There was positive EPS growth in FY2026 despite weak consumer spending in the UK. We are leaving our forecasts unchanged and look for 11% EPS growth in FY2027, supported by share buybacks and acquisitions.
Irish economy
A smaller Budget 2027 to target improved spending efficiency
Despite Ireland’s strong fiscal position, the Summer Economic Statement included a surprisingly modest €8.5bn headline amount for Budget 2027. This was in line with December’s exchequer medium-term ceilings – even though net primary expenditure in 2025 was below projections by €3.5bn. While we expect that the economy will grow stronger than expected, and that this will lead to spending overruns, the Government has made improving the efficiency of public spending a welcome priority for Budget 2027.
