Optima is the UK market leader in Occupational Health services. It has the makings of a strong medium term growth investment, with organic growth complemented by self-funded M&A in a fragmented market. We forecast an attractive 3yr EPS CAGR of 12%, with a landmark contract to support the Armed Forces Recruitment Service leading to a growth inflection from FY28 onwards. The valuation remains attractive, particularly in the context of recent sector deals, and the growth runway is substantial. We initiate at BUY, with a 12m Target Price of 265p. Accretive M&A and self-help on margins could see upside to estimates and our TP.
