In a report released today, David Farrell from Jefferies maintained a Sell rating on Renishaw (RSW – Research Report), with a price target of p2,890.00.
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David Farrell has given his Sell rating due to a combination of factors impacting Renishaw’s financial performance. The recent 1H25 results revealed a notable slowdown in the second quarter, with both revenue and adjusted profit before tax declining significantly. The first quarter’s results were seemingly boosted by favorable hedging contracts, but the second quarter suffered from supply chain disruptions and an unfavorable revenue mix.
Despite a positive outlook for order intake, particularly in semiconductor manufacturing and consumer electronics, the guidance provided signals a considerable downgrade in profit expectations. This is compounded by the fact that the company’s stock had recently outperformed the sector, raising expectations which may not be met given the current challenges, thus putting downward pressure on the stock price.