DAVY VIEW

Essentra has been a forgotten stock. Considering the share price performance over the last six-and-a-half years and the fact that Essentra’s multi-divisional organisation is complex, investors have lost enthusiasm for what was once a strong performer. The recent Strategic Review commentary should reignite interest in a more focused investment, and we believe this is the time to revisit what is already an undervalued asset. We initiate with an ‘Outperform’ rating.