Wolters Kluwer Books a Solid First Half Despite Some Coronavirus Pandemic Impact

Narrow-moat Wolters Kluwer once again displayed the resilience and consistency of its business model with a solid first-half update. Despite the ongoing crisis the company booked organic revenue growth of 3%, while recurring revenues, 82% of the group total, were up 4% over the period. Having recently revised our near-term forecasts, we do not expect to make any material changes on the back of this update. We reiterate our EUR 53 fair value estimate. With the shares having rallied almost 30% from their March lows, we believe they are now in overvalued territory.