Jefferies analyst David Farrell initiated coverage of Renishaw with an Underperform rating and 3,270 GBp price target. The company’s markets accounting for about 50% of revenue are under pressure, while its organic revenue growth had turned sharply negative in Q2, the analyst tells investors in a research note. The firm further contends that the the market is underestimating the operational leverage in the business which, in FY23, is compounded by significant wage inflation.
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