We have updated our forecasts for the two acquisitions completed in July and the recent trading update, upgrading EPS by 1-3%. We continue to be attracted to the long term story around UDG, with the track record of acquisitions having been exemplary so far. These attributes are no longer hidden under a bushel however and, with the shares trading on ~30x P/E, a 30%+ premium to its closest peers, UDG probably needs to grow into its valuation. We stay at Hold with a TP of 770p.
