DAVY VIEW

discoverIE’s H1 pre-close update confirms that trading remains lacklustre but is not deteriorating. The number of key customers that have been destocking has reduced, and despite a small trim (c.2%) to our revenue forecasts, much of which is FX, the company remains on track to deliver on FY25e underlying earnings expectations. We continue to see substantial upside risk to our FY26e and FY27e forecasts and reiterate our ‘Outperform’ rating and 915p price target (PT).