DAVY VIEW

Xaar has delivered FY23 profits ahead of our expectations. While customer-delayed launches of new printing machines impacted the FY23 out-turn, most now look set for launch in 2024 and 2025. Xaar has unique technology that will give its customers significant competitive advantage. Increasing market share of its £1bn+ of addressable end markets, we see strong revenue growth potential and improving margins. We reiterate our ‘Outperform’ rating and 12-month price target of 165p.