1. ChatGPT hits a three-year reality check
Deutsche Bank says OpenAI faces three major headwinds: slowing subscription spend, credible substitutes such as Gemini 3, and a projected $1.40 trillion investment requirement for future models. User numbers remain high, but the economics look more challenging than during the platform’s breakout years. Read more …
2. Drax jumps after Citi upgrade
Citi has moved Drax to ‘buy’, arguing that the government’s extension of its contract for difference to 2031 gives the group more time to reshape its strategy. The bank says legacy sites, now used for AI and data-centre purposes, add option value. Shares rose 5.5% to 768p. Read more …
3. Whitbread cut to ‘hold’ as business-rates blow lands
Deutsche Bank has downgraded Whitbread after budget-driven increases in business rates, which it says equate to around 30% of pre-tax profits over four years. A potential tourist-tax regime adds further uncertainty. Read more …
4. Marks & Spencer outlines bigger ambition beyond the high street
M&S set out plans to double its Food division to £14.00 billion over the long term while scaling online Fashion, Home & Beauty. Shore Capital says the strategy supports an earnings path towards 47p per share and improved financial flexibility. Read more …
5. On the Beach gets a higher target as bookings rise
Deutsche Bank has lifted its price target on On the Beach to 345p, citing market-share gains and stronger winter and summer bookings. Profit guidance for FY26 remains £39–£43 million. Read more …