J P M O R G A N North America Securitized Products Research 02 August 2024 Views Nick Maciunas AC (1-212) 834-5671 nicholas.m.maciunas@jpmorgan.com J.P. Morgan Securities LLC Alex Kraus (1-212) 834-5954 alexander.d.kraus@jpmorgan.com J.P. Morgan Securities LLC Sanjana Prasad (1-212) 834-5720 sanjana.t.prasad@jpmchase.com J.P. Morgan Securities LLC David Kaminsky (1-212) 834-5116 david.kaminsky@jpmchase.com J.P. Morgan Securities LLC Agency MBS Don't change the channel, we'll be right back • II voting closes ...

Investment Rating - The report maintains an Underweight recommendation on Telefonica [8]. Core Insights - Altice International's sale of Teads to Outbrain is valued at approximately $1 billion, with Altice receiving $725 million at close and $105 million in convertible preferred equity, indicating a strategic shift [3][4]. - Bouygues reported H1 results with total revenues up 1% year-on-year, but telecom revenues fell short of estimates, leading to a reaffirmation of FY24 guidance [3][4]. - Cellnex's Q2 results showed a 6% revenue increase from its tower business, with EBITDAaL growing by 7.8% year-on-year, reflecting operational efficiency [4][5]. - Digi announced the acquisition of Nowo Communications for €150 million, expanding its mobile and fixed client base [4]. - Inwit reported Q2 revenues of €257 million, up 8.2% year-on-year, driven by CPI-linked price increases and new service developments [4]. - Liberty Global's financial policy focuses on shareholder value, with plans for share buybacks and a commitment to maintaining a leveraged credit group [5]. - Telecom Italia's Q2 results were slightly ahead of expectations, with a focus on its ServCo business and a target to reduce net leverage to below 2.0x by year-end 2024 [8]. - Vodafone launched a tender offer and €500 million senior issue to reduce debt, following the completion of its Vodafone Spain divestment [8]. - Wolters Kluwer reported a 6% organic revenue increase in Q2, with a reaffirmation of FY24 guidance [9]. Summary by Company - **Altice International**: Sale of Teads valued at ~$1 billion, strategic portfolio review nearing completion [3]. - **Bouygues**: H1 revenues rose 1% y/y, telecom revenues fell short, FY24 guidance reaffirmed [3][4]. - **Cellnex**: Q2 revenue growth of 6%, EBITDAaL up 7.8% y/y, operational efficiency noted [4][5]. - **Digi**: Acquisition of Nowo Communications for €150 million announced [4]. - **Inwit**: Q2 revenues of €257 million, up 8.2% y/y, driven by new service developments [4]. - **Liberty Global**: Focus on shareholder value, plans for share buybacks, maintaining leverage [5]. - **Telecom Italia**: Slightly ahead of expectations in Q2, targeting net leverage <2.0x by YE24 [8]. - **Vodafone**: Launched tender offer and €500 million senior issue for debt reduction [8]. - **Wolters Kluwer**: 6% organic revenue growth in Q2, FY24 guidance reaffirmed [9].

North America Equity Research 02 August 2024 J P M O R G A N AER / AL Earnings Takeaways (+DUBAEE/AVOL/GALCLD) Downgrading AER Credit to N From OW (Equity Remains OW) More of the same for lessors reporting yesterday and today – OEM delays (both airframes and engines) amid strong global demand (at least for replacement aircraft) are creating covetable positions for the leasing community who are reextending leases (in the case of AER, it remains >80%) at attractive rates. But it appears equity investor patien ...