Nucor earnings beat by $0.08, revenue fell short of estimates
On Friday, CFRA analyst Alan Lim Seong Chun upgraded shares of IMI Plc (LON:IMI:LN) (OTC: IMIAY) from Hold to Buy, raising the price target to GBP21.00 from the previous GBP20.00. The upgraded valuation is based on a forward 2026 EV/EBITDA multiple of 11x, which is a 0.5 standard deviation premium over the company’s ten-year average. The analyst believes that IMI’s shift towards higher-margin, recurring revenue segments since 2019 justifies a premium valuation.
IMI Plc has been focusing on sectors like Process Automation and Climate Control, which are seen as growth drivers for the company. Although IMI Plc reported a 3% year-over-year organic revenue decline in the first quarter of 2025, with specific segments like Automation and Life Technology experiencing drops of 4% and 2% respectively, the company still managed to improve margins through effective cost management.
The analyst highlighted that despite the revenue challenges, Process Automation orders increased by 7% on an organic basis. This includes a significant 19% jump in Aftermarket orders, bolstered by notable contract wins in the nuclear sector. These developments have contributed to the analyst’s positive outlook on the stock.
IMI’s management has reiterated its full-year 2025 guidance, anticipating mid-single-digit organic revenue growth and an adjusted earnings per share (EPS) in the range of GBP1.29 to GBP1.36. This forecast is supported by the execution of a GBP200 million share buyback program that the company is currently undertaking.
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