EarningsAfter a disappointing 1Q 2024 trading update, where growth materially slowed and no buyback was forthcoming, risks and rewards are being reconsidered.
Investor SentimentGiven the substantial derating of the shares over the past 18 months and now a disappointing trading update, investors are more concerned with worst-case scenarios than upside potential.
Price TargetIn an updated base case, the price target has been reduced by 22% from 1,750p to 1,350p, with a significant increase in the cost of equity for new business.