Intertek Earnings: Turns a Corner After a Strong End to 2023

After a long period of relative disappointment for investors, it appears that narrow-moat Intertek has finally turned a corner. Its March 5 full-year results confirm a strong finish to 2023, with like-for-like revenue up more than 6% and operating margins up 60 basis points. However, more important was the outlook, with management guiding to mid-single-digit organic revenue growth combined with a further improvement in the operating margin. We believe there is more upside for Intertek shares, with our GBX 5,700 fair value estimate lying comfortably above the prevailing share price.