Halma plc (HLMA – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Max Yates from Morgan Stanley maintained a Hold rating on the stock and has a p2,700.00 price target.
Max Yates has given his Hold rating due to a combination of factors influencing Halma plc’s performance. The company has shown positive progress in the second half of fiscal year 2025, maintaining its guidance for organic growth and slightly improving its EBIT margin expectations. This indicates a stable financial outlook, supported by a strong order intake that surpasses revenues, suggesting a healthy demand for its products.
Despite these positive indicators, the Hold rating reflects a cautious approach given the uncertain macroeconomic environment. While Halma’s business model demonstrates resilience and the company has a robust deal pipeline supported by strong free cash flow, the stock’s valuation remains at a premium compared to the sector. This premium, although below historical levels, suggests limited upside potential, justifying the Hold recommendation.
According to TipRanks, Yates is ranked #1760 out of 9347 analysts.
In another report released on March 4, HSBC also upgraded the stock to a Hold with a p2,760.00 price target.