Kepler Cheuvreux raises Smiths Group stock price target ahead of FY results

Published 17/09/2025, 08:54
Kepler Cheuvreux raises Smiths Group stock price target ahead of FY results

Investing.com - Kepler Cheuvreux has raised its price target on Smiths Group (LON:SMIN) stock to GBP27.00 from GBP25.20 while maintaining a Buy rating ahead of the company’s fiscal year 2025 results.

The British engineering company is scheduled to report its FY 2025 results on September 23, with Kepler Cheuvreux expecting a positive update following three financial guidance increases throughout the year. According to InvestingPro, the company boasts a perfect Piotroski Score of 9, indicating exceptional financial strength. Subscribers can access 8 additional exclusive ProTips about Smiths Group .

The research firm forecasts adjusted earnings per share of 118.0p for FY 2025, slightly below the consensus expectation of 119.2p according to Visible Alpha data.

Kepler Cheuvreux notes strong underlying business momentum across Smiths Group’s four business segments and expects solid year-end order books to provide good visibility into FY 2026, with consensus projecting 5.2% organic revenue growth and approximately 50 basis points of operating margin expansion.

Following expected demergers, the firm believes John Crane and Flex-Tek units are well-aligned within a streamlined structure that should drive strong growth and returns, with operating margins above 20% and return on capital employed exceeding 25% in FY 2024. The company maintains a healthy financial position with a current ratio of 2.02 and operates with moderate debt levels, supporting its growth trajectory.

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