Interims are in line with expectations and should reassure, particularly given the strong mid-teens growth ex-China. Improved pork prices should be supportive of a recovery in China in H2 and management remains cautiously optimistic over the full year outlook. New product development activities continue to plan, and should start to contribute from FY25 onwards. Our forecasts, Buy recommendation and 246p Target Price (2.0x EV/Sales) are unchanged. After recent weakness, the shares now stand at a material discount to its UK-listed Animal Health peers. With cautious comfort over the short term outlook in China, ongoing strong growth in the rest of the world, no concerns over the funding position and potentially material upside from the exciting pipeline of complementary vaccines and biologics, we view this as a compelling entry opportunity.
