AO has delivered an impressive FY26 performance with c.11% revenue growth, c.15% Adj. PBT growth to c.£50m and FCF of c.£65m (above prior guidance of c.£50m). This performance is underpinned by AO’s excellent customer service, as nearly 1 million customers have attested to on Trustpilot (a global first). With AO’s strategy delivering good growth and energy hedging in place for FY27E, we remain confident in our forecasts. Hence, the 22% fall in AO’s stock price so far this year leaves the stock trading on only c.12x cal 27 PER and significantly below our 170p Fair Value per share (equivalent to a c.5% cal 27 FCF yield).
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