Narrow-Moat Wolters Kluwer Prints a Solid Full-Year 2021 Result

Organic revenue growth of 6% marked a strong year for narrow-moat Wolters Kluwer. One of the stocks under our business services coverage least affected by the coronavirus pandemic, recurring revenue make up 80% of the total, meaning that for the most part, clients simply rolled over their subscriptions during the period. The pickup in 2021 was largely down to the nonrecurring part of the equation, with growth here rising to 6% over the period. We do not expect to make any material changes to our forecasts on the back of this update, and reiterate our EUR 61 fair value estimate but believe the shares sit firmly in overvalued territory.