However, we change our rating from BUY to NEUTRAL, owing to the constraint of rich valuations (26/22x for FY19/20E EPS, 30% premium over its 3-year historical multiple). We continue to like MSILs unique moats, although valuation leaves little room for an upside. It is trading at an all-time high (26x FY19e and 22x FY20e EPS), which seems expensive. Additionally, earnings are unlikely to be revised upwards, owing to a limited upside to volumes (constraint of 10-12% CAGR owing to capacity), and limited triggers for a margin surprise (current expectations are 180bps expansion in two years).