FTSE 100 firm Intertek (ITRK), a company that assesses the quality of a vast range of products ranging from shoes to pharmaceuticals, is in a rapid growth phase but the market appears unimpressed.

A recent trading update revealed it notched up a 14% rise in revenue to £883.5m for the first four months of 2017.

Investors marked the shares lower to £42.23 as they focused instead on a disappointing contribution from its resources division, which saw revenue fall by 4.7% to £162.8m.

The company says it is well positioned to exploit opportunities in the quality assurances market due to rising global trade, increased regulation and consumer demand for high quality products.

Not everyone is convinced though. Ben McSkelly, an analyst at Shore Capital, advises selling the company on valuation grounds, arguing a recovery in resources revenue is being priced in prematurely.

Robert Plant, an analyst at JP Morgan Cazenove is far more bullish on Intertek’s fortunes. He reiterates an ‘overweight’ rating and increases the company’s organic growth rate by 0.5 percentage points to 2% for this year, his firm have given Intertek an ‘overweight’ recommendation.

While he acknowledges resources will be a drag on performance in the near term, he reckons it will be less of a headwind next year after being offset by the company’s products and trade divisions. These account for more than 90% of the company’s earnings.

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