DAVY VIEW

IMI’s FY23 preliminary results are in line with expectations, with 6% organic revenue growth and operating margin progression. IMI enters 2024 with a record Process Automation order book, aiding growth in the new Automation division. New 2024 adjusted EPS guidance of 120-126p is in line with our estimate, while consensus sits towards the top of this range. We see scope for a material re-rating as IMI closes the gap to US peer valuations. We reiterate our ‘Outperform’ rating and 2,500p price target.