CTA has published a positive trading update this morning covering the 6 months to end June (1H25). FY guidance is reaffirmed after a strong run of customer wins, with 1H25 contract awards matching the full-year total for FY24 a clear sign of accelerating momentum. The global automotive industry is facing a number of challenges but CTA’s performance shows it has a successful recipe to outperform and gain share. We think there is a significant disconnect between CTA’s valuation (FY25e PER of just 3.5x and EV/EBITDA of 2.7x) and the group’s growth prospects (21% PBT growth FY25e and 15% FY26e). BUY
