We expect the upcoming prelims to show another year of solid growth. UDG continues to benefit from structural growth in its markets and deploys its firepower on margin enhancing acquisitions. We upgrade FY18/19 EPS forecasts by 7% to reflect the MicroMass deal, but leave FY17 unchanged. We expect further acquisition-led upgrades in due course, potentially of 40-50%. This underpins the medium term investment case and should support the rating, which on normal conventions looks full. We stay at Hold for now with a SOTP/DCF-derived TP of 841p (from 770p) but can see a route to 1100p-1200p over the next couple of years on successful execution.
