Intertek Earnings: Raising Fair Value Estimate on Improved Margin Outlook

Wide-moat Intertek saw strong 2024 results, growing 7% at constant currencies, but it was shareholder return, and margin outlook increases that sent shares higher in early trading. Intertek raised its dividend 40%, which aligns with its 65% payout policy. They also announced a GBP 350 million share buyback. Intertek achieved its midyear margin target of 17.5% ahead of schedule in 2024, leading to the midterm margin increase to 18.5%. We are raising our fair value estimate to GBX 5,900 from GBX 5,500 after updating our model with recent results and improving our margin outlook.