Halma Maintains Full-Year Guidance in First-Half Trading Update; 10% Upside From Current Levels

Narrow-moat Halma released a brief trading update, which is tracking in line with our expectations. Order intake for the first half is “strongly” above the previous year and is growing at a faster pace than revenue, which will provide useful visibility into the second half given a weaker economic outlook. Guidance of single-digit organic revenue growth and a profit margin, before tax, of approximately 20% was maintained and is in line with our forecasts. We reiterate our GBX 2,310 fair value estimate and view shares as slightly undervalued at current levels.