DAVY VIEW

We downgrade our underlying revenue growth and margin assumptions to reflect the weakening macro and FX headwinds. This is more than offset in FY25E and FY26E by the new contribution from the SciAps, Micromeritics and Piezocryst acquisitions. Risk of order delivery slippage from November/December into early FY25 remain the key short-term headwind. We cut our FY24E underlying adjusted EBITA by 9%, with a 6% reduction in headline adjusted EPS. Our FY24E net cash switches to net debt of £372m, or 1.4x EBITDA. We reduce our price target (PT) by 15% to 2,775p and remain at ‘Underperform’.