LONDON (ShareCast) - (Sharecast News) - JPMorgan Cazenove upgraded Spectris on Wednesday to 'neutral' from 'underweight' and lifted the price target to 2,950p from 2,750p as it said the risk/reward was now more balanced.
The bank noted that Spectris missed consensus adjusted EBITA expectations by 5% on Tuesday, having warned on profits in mid-June, but maintained its FY24 guidance.

JPM said it was cutting its forecasts "marginally" and continues to see risk to organic consensus expectations.

"However, with the recently announced acquisitions expected to close before Q3, we believe earnings momentum will improve nearer term as the deals are consolidated before we see any potential organic downgrades," it said.

"Moreover, with the shares also now -22% year-to-date, underperforming the SXNP by 32%, we now see risk/ reward as more balanced."

JPM said it was refraining from being more positive currently "given the risk to organic forecasts as well as our continued view that despite the portfolio changes, the business is more cyclical than perceived (as has been evidenced over the past few quarters)".

At 1050 BST, the shares were up 3.2% at 3,048p.

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