We Are Not Surprised by Halma Raising Guidance After Strong First Half; Shares Are Fairly Valued

Narrow-moat Halma raised full-year guidance in a brief trading statement following a strong start to the first half of its financial year. The group expects full-year profit to be slightly ahead of previous guidance of low-double-digit organic constant-currency growth. We aren’t surprised by the revision and had baked a strong recovery into our expectations following a decline in organic sales in the prior year due to the coronavirus pandemic. We maintain our GBX 2,200 fair value estimate and view shares as fairly valued.