Intertek Group PLC

ITRK: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 6,615.00	Vkpxx	Clcyhjcd

Narrow-Moat Intertek Happy To See the Back of 2022, but Better Positioned for 2023

Michael Field

Feb 28, 2023

Narrow-moat Intertek finished off full-year 2022 soundly. While organic revenue growth of 5% underwhelmed relative to peers Bureau Veritas and SGS, an almost identical outlook for all three companies in 2023 of mid-single-digit revenue growth and operating margin progression suggests that after a tough time during Chinese lockdowns over the year, the company has finally caught up. Although we expect to update our forecasts, we don’t expect this to have a material impact on our GBX 4,900 fair value estimate. We believe Intertek is currently the most attractive opportunity in the testing, inspection, and certification segment.

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