David Farrell, an analyst from Jefferies, maintained the Hold rating on Renishaw. The associated price target remains the same with p2,450.00.
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David Farrell’s rating is based on a combination of factors, including the recent announcement of Renishaw’s long-standing CFO, Allen Roberts, stepping down. This leadership change comes at a crucial time when the company is undergoing significant transitions, such as implementing a more focused approach to cost control and enhancing transparency with equity markets. These changes, while potentially beneficial in the long term, introduce a level of uncertainty in the short term.
Additionally, despite the positive outlook for FY25F with adjusted profit before tax expected to be at the higher end of guidance, there are external factors like US tariffs that could impact the company’s revenue. The favorable revenue mix and the realization of labor cost savings are positive indicators, but the overall impact of these factors remains to be fully seen. Therefore, the Hold rating reflects a cautious stance, balancing the potential for growth with the uncertainties associated with the ongoing transitions and external economic conditions.