Analyst Andrew Douglas from Jefferies maintained a Buy rating on Spirax Sarco Engineering (SPX – Research Report) and keeping the price target at p7,850.00.
Andrew Douglas’s rating is based on a combination of factors that highlight Spirax Sarco Engineering’s potential for growth and recovery. The company’s performance in the second half of FY24 showed notable improvements, particularly in the Biopharma and Process sectors, as well as in the ETS division. This positive trajectory, coupled with management’s guidance for FY25, suggests that the company is on a steady path with no major surprises anticipated.
Despite a 4% foreign exchange headwind expected to impact FY25 forecasts, Spirax Sarco Engineering is positioned to achieve approximately 4% organic constant currency growth across all divisions. The company’s ability to overcome recent challenges and the benefits from self-help initiatives contribute to a favorable outlook. While some skepticism remains, the overall financial health and strategic direction of the company support the Buy rating, indicating confidence in its capacity to drive an earnings recovery.
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