LONDON (ShareCast) - Investec has dimmed its recommendation for Dialight from 'buy' to 'hold', while it raised the target price from 550p to 565p.
Analyst Michael Blogg said in a note that Investec reduced Dialight's group revenue estimates by about 11% each year, dropping through to earnings per share as cuts of 36%, falling to 25% by 2017.

Blogg said the lighting manufacturer's new chief executive Michael Sutsko must deal swiftly with productivity at its new Mexican plant.

"Reduced demand from the oil & gas and mining markets is hardly Dialight's fault but confidence has taken another knock."

Blogg said Dialight's revenue would grow after a hiatus caused by investment reassessments.

Investec compared Dialight with its peers and included a 20% discount to reflect the newness of management in its recommendation.

Dialight shares were down 1.65% on Monday at 542.88p

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