CVS’ interims are very strong, comfortably surpassing our expectations with a 10% PBT beat. LFL sales were up 7.2% vs. our 6.0% and EPS grew by 48%. Operationally there is plenty to be pleased about. Consolidation remains strong and current trading commentary is reassuring. We push through 5% EPS upgrades for FY17/FY18. In this note we show scope for earnings to more than double in the next 5 years. It is in this context that the premium rating should be assessed. CVS remains a high conviction p ....
