DAVY VIEW

Intertek has maintained a phenomenal track record since its IPO in 2002 to become one of the premier global testing and assurance players, driven by increased regulation, greater product numbers and brands (especially in the technology space), and bolt-on acquisitions. We have little doubt that the next 12-18 months will see strong recovery in growth, but we are concerned this is more than priced in. We initiate coverage with an ‘Underperform’ recommendation.