We have updated our forecasts following regulatory approval of WIL’s acquisition of Conversia, which we expect to add impetus, quality and further diversification to its earnings. At the EPS level we upgrade our current year and FY27E adj. EPS estimates by 0.5% and 13%, respectively, contributing to two-year growth of 28%, accompanied by strong cash generation (rapidly reducing net debt) and a useful DPS progression. We regard the WIL’s stock as significantly undervalued relative to this potential and the quality of its underlying businesses - particularly following a period of, in our view, unwarranted share price weakness (-23% YTD). Specifically, our 12m target price of 514p (raised from 463p) suggests a c.75% TSR. BUY.
