Halma: Full-Year Guidance Confirmed Following First-Half Order Growth

We are comfortable with our current estimates following narrow-moat Halma’s first-half trading update, which reiterated its full-year guidance of “good” organic revenue growth. While the update was light in quantitative detail, management indicated that order intake is ahead of the prior year, which we anticipate will support mid-single-digit organic revenue growth for the full year, having entered the year with a healthy order book. We maintain our GBX 2,310 fair value estimate and view shares as fairly valued.