DAVY VIEW

Cpl’s operational execution (cost management and business generation) is complementing its strategic positioning (moving into higher value-added services) and producing impressive results. Net fees and underlying operating profits were up 15% and 24% in H1 respectively despite double-digit growth in the prior year. This momentum is incongruent with its valuation levels (forward P/E of 8.3x), and we reiterate our ‘Outperform’ rating.