DAVY VIEW

Mix effects on average selling prices (ASPs), along with the accretion from the company’s share buyback programme, are the main drivers of our c.4% increase in estimates for the 2019-2022 period. On top of continued growth in volumes, the company will return a significant amount of capital to shareholders in the medium term. We see our average 10.5% yield estimate in the next two years as somewhat conservative. We reiterate our ‘Outperform’ rating and raise our price target to €1.54 from €1.50 previously.