A recent visit to AVG’s Hayward Tyler site in Luton and a Medical product demonstration reinforced our confidence in the group’s value creation potential and prompts us to increase our TP from 715p to 770p as we start to price in some value for Medical. The visit highlighted the strength of the Engineering division’s market positioning, breadth of opportunity and exposure to attractive growth markets (Nuclear, Defence, Critical Infrastructure). The Medical presentation set out a credible commercial roadmap with tangible milestones against which progress can be measured. The shares have performed strongly of late, but we continue to see further upside given the quality of AES, scarcity value in nuclear and the emerging value in Medical, leaving AVG as a core pick for us. No changes to forecasts or recommendation. BUY