Analyst David Farrell of Jefferies maintained a Hold rating on Renishaw, retaining the price target of p2,450.00.
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David Farrell has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Renishaw’s recent performance and outlook. The company’s recent financial results showed that the adjusted profit before tax was slightly above the top end of prior guidance, driven primarily by improvements in the core Manufacturing Technology division. This indicates a solid performance in a key area of their business.
However, despite a strong cash position, there is no clear news on additional shareholder returns, which may be a point of concern for investors looking for immediate capital gains. The outlook for the upcoming fiscal year suggests steady revenue growth, aligning with consensus expectations of a modest increase. While there is potential for upward adjustments in profit expectations due to cost savings, the overall growth forecast remains moderate, justifying a Hold rating as the company navigates these mixed signals.
Farrell covers the Industrials sector, focusing on stocks such as Volution, QinetiQ, and Chemring. According to TipRanks, Farrell has an average return of 11.0% and a 67.11% success rate on recommended stocks.
In another report released on September 8, Deutsche Bank also maintained a Hold rating on the stock with a p3,340.00 price target.