DAVY VIEW

Order intake looks to have stabilised in March, with continued lumpy destocking in Healthcare and broad destocking in Industrial Technology. Management is pulling all its cash levers, with Q1 net debt down £9m quarter-on-quarter (qoq) and cautious guidance of a H124 peak maintained. Encouragingly, end market mood music is improving. Q2 order intake will be key to timing the share price recovery; with the share price back at previous lows, sentiment remains at rock bottom. Our price target remains 2,530p as we look through 2024 and see significant re-rating potential as financial metrics normalise in 2025. We reiterate our ‘Outperform’ rating.