Xaar shares, +69.4% YTD, are the top-performing share among our UK tech selection (n=72), -3.6% YTD. Enthusiasm is due to the moat, strengthening GTM and execution on global TAM, despite the ongoing policy ‘flip flops’ that have heightened uncertainty. Xaar’s latest partnership with Sokan New Materials strengthens its position in the EV battery coatings market, in a deal that marks: (i) a further endorsement of Xaar’s printhead technology, and (ii) is another sign of the structural shift from traditional film coating methods. Xaar’s precision inkjet technology uses high viscosity inks (thicker and permeate less into surfaces), so OEMs gain from improved print consistency, uniformity and lower cost. The approach uses fewer precious environmental resources. Xaar has contracts with an array of OEMs, which are starting to debut new products. While some KPIs urge caution for the immediate term, there are positive signs that this market is braced to ‘unclog’. You have not missed this rising star: shares trade on a pedestrian 1.4x EV/Sales vs. sector 3.1x – the re-rating is long overdue, in our view.