In a report released today, Andrew Douglas from Jefferies maintained a Hold rating on Smiths Group plc, with a price target of p1,930.00.
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Andrew Douglas has given his Hold rating due to a combination of factors surrounding Smiths Group plc’s recent strategic decisions. The company announced the sale of its Detection business to CVC Capital Partners for approximately £2.0 billion, which is a favorable outcome as it aligns with market expectations and potentially exceeds them. This transaction is expected to be finalized in the second half of the fiscal year 2026, pending regulatory approvals.
While the sale is anticipated to positively impact Smiths’ share price and provide substantial cash proceeds, the decision to rate the stock as Hold reflects a cautious approach. The management’s plan to return a significant portion of the proceeds to shareholders through buybacks or dividends is promising, but the long-term growth prospects of the remaining businesses, Interconnect and Detection, are yet to be fully realized. Therefore, the Hold rating suggests that investors may want to wait for further developments before making significant changes to their positions.
According to TipRanks, Douglas is a 4-star analyst with an average return of 4.1% and a 55.06% success rate. Douglas covers the Industrials sector, focusing on stocks such as Senior plc, Smiths Group plc, and IMI plc.
In another report released on November 28, TR | OpenAI – 4o also downgraded the stock to a Hold with a p2,653.00 price target.