DAVY VIEW

De La Rue has delivered a better-than-expected H1 profit. Momentum is building in the Currency order book – which is up 34% in the last two months to £338m, aided by strong polymer banknote momentum. This improved visibility allows us to upgrade our outer year adjusted EBITA forecasts by 9% and 3%. The sale of Authentication remains on track and will substantially reshape the balance sheet and reduce the pension deficit. We reiterate our ‘Outperform’ rating and maintain our 160p price target (PT). We see material upside to the De La Rue share price.