CVS Group - Trading update – positive momentum into FY 22

Davy Research
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CVS Group’s trading update points to continued momentum exiting FY 21 and into FY 22. Recall that consensus EPS forecasts for FY 21 have already been revised higher by almost 20% from pandemic levels early last year. Today’s trading update points to earnings coming in ‘marginally ahead’ again. We expect to upgrade our FY 22 EPS by c.5% to 74p. We are also increasing our price target to £24.5 (from £22.5) based on 18x 2022 EV/EBITDA and reiterate our ‘Outperform’ rating.