After a challenging FY24, SUN looks well positioned to return to growth and improve margins in the coming years. FY25 is reported to be off to a positive start with improved momentum driving new account wins and double-digit growth in evidence in Q1 in Europe and APAC. Our maiden FY25 forecasts are pitched conservatively, showing 4% revenue growth and a return to positive FCF. If the company can demonstrate growth and margin improvement, transitioning into sustainable profitability and cash generation, this should prompt a material re-rating in the shares, which remain heavily discounted at current levels.
