Davy Morning Equity Briefing
Aug 13, 2026
Dole plc
Meaningfully de-risked, yet valuation remains disconnected
We are modestly lowering our FY26 adjusted EBITDA forecast by c.1% to c.$401m, reflecting a slower pass-through of recovery mechanisms and the lingering impact of the Middle East conflict extending into H2-26. Despite the prevailing macro headwinds, we believe the simplification of Dole’s portfolio has materially reduced operational risk. Financial risk has declined in parallel through continued deleveraging and we maintain our FY26 year-end leverage forecast of c.1.1x. In our view, the group is now well positioned to invest for growth over the short to medium term, with further tangible evidence of increased investment activity likely to be an important catalyst for a re-rating of the equity, which continues to trade at a significant discount to peers. We maintain our ‘Outperform’ rating and $21.5 share price target (c.65% upside).
Entain
Good H1 results
Entain has reported a good set of H126 numbers, with online revenue growth at the top end of the range and a robust margin performance. The UK & Ireland showed strong online performance with double-digit growth in both sports and gaming. It has reiterated its outlook for the year. This is a positive update from Entain with improving momentum in Q2. In the context of its current valuation, which is at a substantial discount to market transaction multiples, this should be well received. Focus on the management call this morning will likely be on any other potential areas of value realisation post the CEE transaction and expectations for mitigation potential should there be any changes to retail machine duty.
FBD Holdings
Continued delivery
Since the outset of its current strategy, FBD has delivered across all fronts, growing in its targeted areas and returning very high levels of capital via dividends. This was all achieved while demonstrating the resilience of the model in the face of adverse weather and retaining robust levels of capital. The strategy points to more of the same, with a greater emphasis on a higher sustainable dividend – providing further support to the valuation. We retain our ‘Outperform’ rating with a revised price target of €23.30.
Greencoat UK Wind
Well positioned for H2 2026
We have long viewed Greencoat UK Wind (UKW) as one of the higher quality operators in the listed renewables space. As a sector pioneer, it has consistently been at the forefront of industry developments, from buybacks to market-based fee structures. However, after several years of net asset value (NAV) revisions driven by higher yields and weaker power prices, investors have been waiting for the operating backdrop to improve. We believe the H1 2026 update may provide the first signs of that turning point; with c.35% merchant exposure in 2026 (55% over the next decade), UKW is well placed to benefit from sustained strength in UK power prices over the next 12 months.
UK economy
Another strong H1 for UK GDP, but a weaker H2 is again likely
UK gross domestic product (GDP) grew strongly in H1, with business investment and manufacturing the standout results in Q2. However, strong H1 growth has been quite typical in recent years, and we expect that a weaker H2 is likely. This would leave growth in 2026 overall at a relatively underwhelming pace, meaning the Bank of England’s main focus should remain on the labour market and monitoring for second-round effects of higher energy prices. We still see no reason to hike Bank Rate this year.
