Jefferies Updates European Midcap Outlook for Late 2026

Jefferies Group updated its investment outlook for European midcap companies for the second half of 2026, citing improved earnings visibility and stronger order intake following a positive second-quarter reporting season.

The firm identified Inficon, Bilfinger, and Redcare Pharmacy as top picks. It specifically highlighted Systemair for its growth in data-center cooling, which is being driven by increased spending on artificial intelligence. Volex Group received a Buy rating after raising its full-year guidance, and Acerinox saw its price target increase to €22 as it expands into the U.S. market.

In contrast, Jefferies downgraded DocMorris and Nagarro to Hold. The downgrade for Nagarro follows a takeover offer from Persistent Systems, which proposed to acquire the company at €81 per share.