Intertek split in two ‘could unlock material upside’, says UBS Proactive uses images sourced from Shutterstock
Intertek Group PLC (LSE:ITRK) could unlock significant value after a better-than-expected rebound in trading and a proposed break-up of the business, according to analysts.
UBS analysts said the group’s unscheduled update showed organic growth recovered to a “good” level of 5.4% in the first quarter, a clear improvement on the weak 1.9% seen at the end of 2025.
This was “better than feared” and ahead of expectations across most divisions, particularly in higher-margin areas such as Corporate Assurance and Consumer Products.
Attention has now shifted to the newly announced strategic review, which will assess a sale or demerger of the Energy & Infrastructure division.
UBS said the move could “unlock material upside”, arguing the current structure has contributed to a prolonged share price de-rating.
The division accounts for around 46% of revenue but only 27% of profit, reflecting lower margins and more volatile end markets.
Analysts at Jefferies said if the company shifts towards two standalone, specialist portfolios, it would enable “sharper execution and capital allocation”.
They noted that the Testing & Assurance arm offers higher margins and lower cyclicality, while Energy & Infrastructure is a lower-margin business that could attract interest from strategic buyers amid wider consolidation in the testing, inspection and certification sector.
A higher-quality Testing & Assurance business with stronger growth and margins could justify a higher valuation multiple, UBS said.
With any changes expected to be announced by mid-2027, UBS kept its ‘buy’ rating and 6,000p price target, implying around 40% upside from current levels. Jefferies also has a ‘buy’ rating and 4,800p target.