DAVY VIEW

James Fisher has delivered H124 EBITA ahead of our expectations as the turnaround strategy gathers pace. The new revolving credit facility (RCF) agreement is nearly ready — we anticipate it to be completed in the coming weeks — on more favourable terms. The recent sale of Martek helps further reduce financial leverage. FY guidance has been maintained, although we see the reduced H2 weighting providing some scope for upside risk. Higher finance costs impact our adjusted EPS estimates. Our new price target (PT) of 850p, up 250p, reflects our modestly lowered EBITDA following the Martek adjustment and the removal of our 25% peer group discount. With significant further re-rating potential, we reiterate our ‘Outperform’ rating.