Today’s update reveals strong trading in the last 13 weeks and it is reiterating FY forecasts even with additional reinvestment into tech/growth. All segments of the group are back in growth including DIFM. The shares have performed well (+45% YTD) and nearly met our target. However, per previous notes we felt there was plenty of additional headroom, particularly as investors wake up to the inflection in sales growth and operationally geared EPS recovery, which is being amplified by sustainable buybacks given the improving FCF. Pending a meeting with management later, we see 250p as the next logical step up and stay at Buy.
