DAVY VIEW

IMI shares have hit an all-time high as it delivers another period of solid mid-single-digit organic revenue growth. While the end market performance was very mixed, as expected, the 4% organic revenue growth shows progress towards moving the group consistently nearer to its 5% target. Cost savings are on track and a small €19m disposal gives an effective upgrade to unchanged FY24 EPS guidance of 120-126p. We believe delivery of consistent organic growth and margins near 20% will drive a re-rating and push the shares towards our 2,500p 12-month price target. We reiterate our ‘Outperform’ rating. Interim results are due on July 26th.