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Deutsche Bank cuts Spectris stock target, maintains hold

EditorAhmed Abdulazez Abdulkadir
Published 2024-06-20, 09:58 a/m

On Thursday, Deutsche Bank (ETR:DBKGn) adjusted its outlook on Spectris Plc (SXS:LN) (OTC: SEPJF), a precision instrumentation and controls company. The firm's analyst set a new price target of GBP35.30, a decrease from the previous GBP37.25, while keeping a Hold rating on the stock.

Spectris recently issued a warning that prompted the analyst to revise the full-year EBITA (earnings before interest, taxes, and amortization) forecast down by 12% to £220 million. This figure falls 5% below the lowest end of the company's previously stated range. The adjustment comes after a Q1 update in early May, which indicated that the company's financial results were heavily reliant on the second half of the year's order intake.

The analyst noted that the warning from Spectris was specifically tied to its Malvern Panalytical business, suggesting that performance issues were isolated to this division. The outlook for the other businesses within the Spectris Group remains unchanged, according to the company's guidance.

The revision also reflects a cautious stance on the company's H2 dependency, with the analyst's revised H2 2024 EBITA prediction set at £147.0 million. This is slightly lower than the actual EBITA of £151.8 million reported for the second half of 2023, highlighting a conservative outlook for the company's future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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