Halma PLC
HLMA: XLON (GBR)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
GBX 3,682.00 | Yzmpjn | Fctzbgwd |
Halma: Full-Year Guidance Might Be Conservative Following Solid Trading Update
We maintain our GBX 2,600 for narrow-moat Halma after reviewing its first-half trading update. First-half order intake is up year over year and growing ahead of revenue, which is underpinning "good" organic revenue growth, although no figures were provided. Full-year guidance of good organic revenue growth and adjusted EBIT margin of around 21% was unchanged. We think its EBIT margin guidance could be on the conservative side, given modest margin improvement during the first half. Shares currently screen as fairly valued.