DAVY VIEW

We initiate coverage of Volution with an ‘Outperform’ recommendation. Ventilation and air quality are of increasing importance to modern society and the expanding Volution is a leader in this category. There is a deepening international dimension to its operations plus the group’s ambition is supported by consistently high free cash flow. It successfully navigated the challenges related to the pandemic, and we believe Volution can increase earnings by an average of circa 20% per annum between 2020 and 2023. The Volution rating has expanded, but this is an ESG-friendly story with earnings momentum and an appetite for expansion that provides the platform for further gains.