Analyst Andrew Douglas of Jefferies maintained a Hold rating on Smiths Group plc, retaining the price target of p1,930.00.
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Andrew Douglas has given his Hold rating due to a combination of factors related to Smiths Group plc’s recent performance and strategic decisions. The company’s 1Q26 trading update showed a moderate sales growth of 3.5%, which aligns with their target range but was achieved against a challenging year-over-year comparison. This growth was primarily driven by the Detection segment, which experienced strong double-digit growth, while other segments like John Crane and Flex-Tek showed marginal or flat performance.
Additionally, the management’s announcement of a £1 billion share buyback following the proposed disposal of Interconnect for £1.3 billion indicates a strategic move to return value to shareholders. However, the ongoing sale and demerger process for Smiths Detection adds an element of uncertainty. The management’s reiteration of their full-year guidance suggests stability, but the integration of the buyback into future consensus forecasts presents a challenge. These factors collectively contribute to the Hold rating, reflecting a balanced view of potential risks and rewards.
According to TipRanks, Douglas is a 4-star analyst with an average return of 4.8% and a 56.82% success rate. Douglas covers the Industrials sector, focusing on stocks such as Smiths Group plc, Avon Technologies, and IMI plc.