Avon Technologies has delivered a solid first half, hitting medium-term targets 18 months early, with margin at 15.2% and ROIC at 20.8%. The operational transformation is now largely complete and the business is now firmly shifting to growth mode, backed by structural demand tailwinds, and an increasingly differentiated product portfolio. We upgrade EPS by 5%/5%/4% for FY26/27/28 on the revised margin guidance and see further upside to come. At under 16x FY27e earnings, a material discount to defence subsector peers, with an underappreciated ROIC profile and a management team that keeps doing what it says it will do, the shares look compelling. Buy, 2,300p.