Hold Rating Justified Amid Stable Performance and Tariff Concerns for Oxford Instruments

In a report released today, David Farrell from Jefferies maintained a Hold rating on Oxford Instruments (OXINF – Research Report), with a price target of p2,230.00.

David Farrell’s rating is based on several factors, including the confirmation of FY25F EBITA expectations, which aligns with market relief following recent economic uncertainties. The solid order intake, showing a 3% increase on a constant currency basis, indicates a stable outlook, although the book-to-bill ratio is slightly below 1.0x due to revenue movements.
However, the impact of tariffs, particularly concerning the US market that constitutes about 30% of Oxford Instruments’ revenue, poses a risk of delayed deliveries. This uncertainty regarding tariff levels affects the company’s ability to provide meaningful guidance for FY26F. Despite these challenges, the expected constant currency revenue growth of 9% and an EBITA margin improvement to 16.5% suggest a stable performance, justifying the Hold rating.