DAVY VIEW

We are cutting our FY26 and FY27 adjusted EPS forecasts by c.11% and c.6% respectively, reflecting weaker expected volume delivery (FY26: -c.2.3%) and ongoing margin pressure at Primark, as its growth model continues to generate limited traction. While current valuation is depressed, we see limited near-term catalysts for recovery, with earnings momentum likely to remain challenged as growth pressures appear increasingly structural rather than cyclical. As such, we reiterate our 'Neutral' rating and reduce our price target to £21.5.