DAVY VIEW

We are lowering our FY27 adjusted operating profit forecasts by c.7%, primarily reflecting further weakness in Sugar; in aggregate, our group FY27 profit forecasts have been reduced by c.23% over the last nine months. While we believe this is reflected in the valuation, we see no clear catalyst for a positive inflection — earnings momentum has yet to stabilise, the Primark forward growth model remains contested and the extended demerger timeline and limited standalone disclosure leave the equity under a strategic overhang. We maintain our ‘Neutral’ rating but lower our price target to £20 (4% upside).