DAVY VIEW

James Fisher will soon mark a major turning point in its recent history. The sale of RMSpumptools will reset the balance sheet leverage onto a more sustainable footing. The share price is not currently reflecting this, partly due to low investor sentiment given recent history. We see scope for a material re-rating once this happens, possibly as soon as late June. A renewed revolving credit facility (RCF) – on better terms – will follow soon after, and then horizons can be lifted towards revenue growth and margin improvement self-help. We reiterate our ‘Outperform’ rating and highlight our 600p price target, providing scope for 100% upside.