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Investing.com - CFRA has upgraded Spirax Group PLC (LON:SPX) from Hold to Buy and raised its price target to GBP80.00 from GBP64.00, citing improved operational resilience and earnings visibility. According to InvestingPro data, the company maintains strong financial metrics with a healthy current ratio of 1.85 and operates with moderate debt levels.
The upgrade follows Spirax Group’s H1 2025 performance, which exceeded consensus estimates with sales of GBP822 million and adjusted EBIT of GBP159 million, compared to expectations of GBP814 million and GBP152 million respectively.
CFRA highlighted the company’s better-than-expected adjusted operating profit margin, which improved by 70 basis points organically to 19.3%, demonstrating Spirax’s ability to maintain profitability despite challenging market conditions.
The research firm removed its previous valuation discount due to the improvement in operational resilience and earnings visibility, basing its new price target on a 2026 P/E of 25.8x, which aligns with Spirax’s three-year average P/E valuation.
CFRA reduced its 2025 EPS forecast to GBP2.90 from GBP2.98 and its 2026 EPS estimate to GBP3.10 from GBP3.49, citing near-term dilution from front-loaded restructuring costs in 2025 and currency headwinds that could partially offset organic growth.
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