Morgan Stanley hikes Spectris target price ahead of strategic review
Analysts at Morgan Stanley revised their target price on shares of Spectris higher ahead of the UK engineer´s strategic review, on 14 February.
Electronic & Electrical Equipment
9,757.85
09:09 29/04/24
FTSE 250
19,869.59
09:10 29/04/24
FTSE 350
4,489.64
09:10 29/04/24
FTSE All-Share
4,442.77
09:10 29/04/24
Spectris
3,286.00p
09:10 29/04/24
If the UK instruments and specialist controls manufacturer suceeded in lowering its administrative expenses back to their long-term average, that could boost its 2018 earnings before interest and taxes and earnings per share to 7% and 16% above the consensus forecast.
That, the broker said, implied 22% upside for the stock, which was trading at an 11% discount to its peers on an earnings per share basis.
Morgan Stanley highlighted how the company was a good play on the 'Internet of Things' theme, helping the likes of Rockwell, ABB, Siemens and Schneider to unlock data from the factory floor.
Merger and acquisitions activity was also seen as an ogoing earnings driver.
The broker reiterated its 'overweight' recommendation and hiked its target price from 2,540p to 2,780p.