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Mar 9 2021, 06:30 GMT
CVS Group (CVS) is the second largest player in a consolidating UK veterinary market. A new leadership team is bringing management best practices to bear across the group’s portfolio and leveraging the strength of CVS’s integrated model. We think this, coupled with attractive industry fundamentals, could drive double-digit organic earnings growth over the medium term. We also see very material inorganic earnings optionality from further UK market consolidation. We initiate coverage with an ‘Outperform’ rating and a price target of £20, almost 20% upside.