29th Jan 2015 13:07
LONDON (Alliance News) - Ivestec has put its target price and rating for Renishaw PLC under review following its first half results Thursday, noting that the company "stands out from the crowd for its growth, at a time when other companies are far more circumspect."
Renishaw raised its guidance for the full year and upped its interim dividend after its pretax profit more than doubled in its first half.
Renishaw now expects to post a pretax profit of between GBP130 million to GBP150 million in the year ending June 30, 2015, on revenue of between GBP480 million to GBP510 million. The industrial measuring and healthcare equipment company's previous guidance was pretax profit of GBP120 million to GBP140 million on revenue of between GBP465 million to GBP495 million.
Investec says: "Renishaw is sparing with financial information and it is investing very heavily in staff, new products and facilities. It is challenging investors to trust management?s judgement and its track record certainly invites support."
N+1 Singer has a Sell rating on Renishaw, noting that whilst it expects to increase its forecasts for the financial year 2015 to reflect the managements raised guidance, it retains its caution on Renishaw's financial year 2016. It expects irregular orders related to Apple to drop out of Renishaw's sales line, but for costs to rise as a result of recruitment in 2015.
Numis has a Hold rating on Renishaw, saying that limited visibility means its is difficult to forecast 2016, and for now it continues to assume there will be a decline in its 2016 results given the exceptional strength of the current year.
Shares in Renishaw are trading down 0.3% at 2,334.00 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Renishaw