Revenue for the six months to June surpassed the total for FY22 due to strong off-the-shelf momentum, which also drives upgrades to FY25E and FY26E. This is prior to taking into account the £290m lifetime value (LTV) of design wins secured over the last three years (incl. £90m in 1H25) which are still to crystalise. To better demonstrate the impact of these wins, we introduce FY27 and FY28 forecasts, with revenue growing to £66m and PBT £11m in FY28. Against which, CNC’s stock looks undervalued, trading on 19x & 17x FY27 & FY28 P/E. We upgrade our TP to 230p (from 200p) 23x & 21x FY27 & FY28 P/E. Suggesting a 24% 12m TSR. BUY.
