DAVY VIEW

We have reviewed our forecasts following the recent full-year pre-close update. The key takeaway was that FYMar24 is in line with expectations. However, FX headwinds have increased since the beginning of the 2024. We revise our adjusted EBITA to reflect this, leaving our underlying revenue and profit assumptions broadly unchanged. We look forward to the strategy update, and hopefully new margin targets, at the prelim results on June 11th. The shares continue to offer re-rating potential and we see scope for a bidding war if Spectris return with a refreshed bid. We maintain our 2,500p price target (PT) and ‘Outperform’ rating.