Intertek Group PLC shares look undervalued ahead of next month’s full-year results, according to Citi, which argues that much of the bad news is already priced in.
The testing and inspection group's shares trade on a 12-month forward price to earnings ratio of 16.4 times, which the US bank noted is close to the lowest levels seen since 2010.
This represents what Citi calls an "unusual discount" to peers such as SGS and Bureau Veritas.
In its view, that suggests negative earnings revisions are already reflected in the share price.
The bank is more upbeat on growth than the wider market, expecting the consumer products division to grow organically by 6% in 2026, compared with consensus forecasts of 4.7%.
That should be supported by a solid outlook for container trade, signalling stronger global goods demand and testing activity, driving mid-single-digit growth in softlines and hardlines, and a supportive backdrop for electrical and connected world testing.
Citi expects this stronger growth to deliver 50 basis points of margin expansion in the division, versus 14 basis points pencilled in by consensus.
As a result, it forecasts adjusted operating profit of £668 million in 2026, about 4% ahead of market expectations.