BofA warns Fed risks policy mistake with early rate cuts
On Thursday, Deutsche Bank (ETR:DBKGn)’s analysts adjusted their stance on Spectris Plc (LON:SXS:LN) (OTC:SEPJF), reducing the price target from GBP28.00 to GBP26.00, while maintaining a Hold rating on the stock. The revision follows a reassessment of the company’s financial outlook, with a particular focus on its full-year earnings before interest, taxes, and amortization (EBITA).
The bank’s analysts have decreased their full-year EBITA forecast for Spectris by 7%, setting the new estimate at £232.5 million. This change is attributed to a tempered expectation for organic growth, which has been adjusted from an initial 2.8% to a modest 0.3%, as well as modified projections for the performance of acquisitions made in the previous year. Additionally, they have accounted for foreign exchange fluctuations, which are anticipated to present a slightly increased headwind.
Despite the lower sales performance in the first quarter, with like-for-like sales declining by 8% year-over-year, Spectris’ management, during the first-quarter update on April 30, reiterated their confidence in achieving solid growth throughout the year. This projected growth is expected to align with market expectations, which currently range from £218 million to £264 million in EBITA, although the lower end of this range has seen recent adjustments.
The company’s outlook remains heavily dependent on a stronger performance in the second half of the year, and this comes amidst growing macroeconomic uncertainties. While the first quarter is traditionally the slowest for Spectris and the second quarter is poised to benefit from easier comparatives due to disruptions from last year’s enterprise resource planning (ERP) issues at its Scientific division, the decline in sales was more pronounced than Deutsche Bank analysts had anticipated.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.