Renishaw (RSW – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst David Farrell from Jefferies maintained a Sell rating on the stock and has a p2,890.00 price target.
David Farrell has given his Sell rating due to a combination of factors impacting Renishaw’s financial outlook. One of the primary reasons is the narrowing of the company’s guidance for the fiscal year 2025, which suggests only a slight decrease in adjusted profit before tax by 2%. However, when considering the annualized figures for the fourth quarter, there is an anticipated downgrade of approximately 13% for fiscal year 2026. This potential decline in future earnings is a significant concern for investors.
Additionally, Renishaw’s strategic decision to close its loss-making drug delivery segment within its Neurological business, while beneficial to the consensus EBITA for fiscal year 2025, indicates underlying challenges in its portfolio. The company is also exploring the sale of the remaining Neurological business, which adds an element of uncertainty. Despite a potential relief rally due to favorable trade developments between the US and UK, these factors contribute to a cautious outlook, prompting the Sell recommendation.
In another report released on April 25, Barclays also maintained a Sell rating on the stock with a £20.00 price target.