Wolters Kluwer Cranking Through the Gears in 1H

Narrow-moat Wolters Kluwer published a robust first-half update, with organic revenue up 5% and operating margin up 170 basis points on an adjusted basis. Management has tightened up its full year guidance, with operating margins expected to be around 25%, a 60-basis-point improvement on 2020, which given the resilient performance in 2020, is a solid feat. We may tweak our near-term forecasts in the coming period, but do not expect this to have a material effect on our EUR 53 fair value estimate. We believe the shares sit firmly in overvalued territory.