JPMorgan raises Spectris stock rating, lifts target to GBP34.50

On Monday, JPMorgan upgraded Spectris Plc (LON:SXS:LN) (OTC: SEPJF) stock from Neutral to Overweight, increasing the price target to GBP34.50, up from the previous GBP26.50. The adjustment reflects a positive outlook on the company’s end markets, which are showing signs of improvement or stabilization. The research firm’s analysts anticipate that Spectris’s adjusted EBITDA for the year 2025 could be 5% higher than current consensus expectations, with a potential upside scenario of 9%.

The upgrade comes despite a recent uptick in Spectris’s share price, as the stock continues to trade at a discount compared to its historical average. The discount is also wider than that of its peers in the Instrumentation sector. According to JPMorgan, this gap should narrow as investor confidence in the company’s earnings grows.

JPMorgan’s analysts are looking forward to the full-year 2024 results from Spectris, expecting order momentum to provide further support for the stock. The raised price target of 3,450p, up from 2,650p, suggests a significant potential upside from the current trading levels.

The optimism from JPMorgan is based on the belief that key end markets for Spectris are either recovering or have reached a low point, setting the stage for growth. This perspective is underpinned by multiple factors that the analysts believe could lead to earnings surpassing the consensus expectations.

Spectris, a leading provider of precision instrumentation and controls, is poised to benefit from the improved market conditions as outlined by JPMorgan. The firm’s upcoming financial results will be closely watched for indications of whether the anticipated order momentum has materialized.

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