With 2025 set to be a pivotal year for the group, EAH will hold an R&D Day on 13th March where it will update investors on progress with its new product development pipeline and flag key upcoming milestones. We continue to contend the shares are suffering from doubly punitive measures in that the value of the R&D pipeline is getting no credit and the significant (discretionary) upfront investment is also masking the underlying attractions of the “core”. Updating our recent analysis shows EAH is trading on sub-2x EV/EBITDA with a 20%+ FCF yield pre-R&D costs. This looks far too cheap in our view and investors should be richly rewarded on successful execution. We stay at BUY, with a 258p TP, materially above current levels.
