Jefferies analyst Andrew Douglas maintained a Hold rating on Smiths Group plc today and set a price target of p1,930.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Andrew Douglas has given his Hold rating due to a combination of factors related to Smiths Group plc’s recent performance and future outlook. The company’s FY25 preliminary results slightly exceeded expectations in terms of sales and EBITA, showing strong organic sales growth and a marginal improvement in EBITA margins. However, these positive results were tempered by one-off impacts such as the Flex-Tek issue and challenges from a cyber attack and operational upgrades.
Looking ahead, the guidance for FY26 indicates a healthy but moderate organic sales growth and anticipated improvement in EBITA margins, aligning closely with market consensus. The ongoing ‘Acceleration Plan’ is on track, but with little expected change in consensus forecasts, the outlook remains stable. Consequently, Douglas’s Hold rating reflects a balanced view of Smiths Group’s solid performance and the potential risks and uncertainties that could affect future growth.