Andrew Douglas, an analyst from Jefferies, maintained the Buy rating on Spectris (SXS – Research Report). The associated price target remains the same with p3,135.00.
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Andrew Douglas has given his Buy rating due to a combination of factors that suggest potential for Spectris’s growth despite a slow start to the year. The company reported a decline in year-over-year organic constant currency sales, but excluding the impact of the Red Lion Control disposal, there was a positive growth in sales. This indicates underlying strength in the business that might not be immediately apparent from the headline figures.
Additionally, the book-to-bill ratio of 1.07x and a 4% increase in the order book on a constant currency basis are positive indicators of future revenue potential. Management’s commitment to maintaining EBITA guidance and their focus on debt reduction further support the Buy rating. The ongoing PIP program, expected to deliver significant savings, also adds to the confidence in the company’s ability to navigate current challenges and improve profitability.
According to TipRanks, Douglas is a 2-star analyst with an average return of -0.1% and a 47.91% success rate.