With the balance sheet overhang largely resolved, investor focus is likely to turn to Severfield’s earnings recovery. Under a new and very backable management team, we believe the recovery story is credible. Driving operating margins from a c.3% low towards its 7% long term average will be key. Forecasts are conservatively set against a currently subdued market backdrop, but the market could begin to help, with the UK infrastructure cycle building towards a meaningful step-up from cal. '27. Severfield trades on a Mar.'27 PER of just 6.9x on what we believe are trough earnings and margins, and only 4.5x once the India JV is stripped out a rating that materially undervalues a market leading business. Our 42p TP implies 68% upside. Buy.