Restore Company Research (RST)

Restore’s trading update yesterday confirmed a positive start to the year, with revenue growth in the first four months underpinned by the performance of the core storage business. The period has also seen three acquisitions, confirming management’s ambitions to bolster organic growth with selective M&A. Restore is a high-quality business with strong margins and a high level of contracted and recurring revenues. Whilst the shares are showing early signs of a recovery in momentum, the valuation remains, in our view, compelling. We reiterate our 400p Fair Value estimate.