DAVY VIEW

Incredible really. Against a backdrop of ongoing lockdowns in most key markets, UDG has delivered a better-than-expected Q1, notably in its ‘in-field’ activities: STEM and Ashfield Commercial & Clinical. This suggests UDG’s pharma clients are rapidly adjusting to a new world of digital engagement. We also think UDG management is building a stronger company through the pandemic, as both Sharp Europe and now C&C Europe are on an improving trajectory. The acquisition of PHMR tops off an excellent quarter. We are upgrading FY 21 and 22 EPS by 2% and 3% respectively. Our £9 price target suggests 15% upside.