LONDON (ShareCast) - (ShareCast News) - Renishaw was given a boost on Friday after Numis upgraded its rating on the engineering company to 'buy' from 'add' and raised the target price to 3,500p from 3,000p.
The FTSE 250 firm on Thursday reported revenue increased to £240m in the six months ended 31 December 2016 from £198m the same period a year ago, supported by underlying growth of 12% and a foreign exchange benefit of 9%. Pre-tax profit rose to £35.6m from £28.5m.

Underlying revenue growth was driven by the metrology business which saw revenue rise to £227.1m, compared with £184.9m the prior year.

"The very strong growth in metrology is a further proof of its strong structural positioning (geared into automation, speed and higher precision in manufacturing)," said Numis.

"We believe future prospects continue to look strong as this gets complemented by additive manufacturing, potential for a (slightly) stronger capex cycle at Apple (ahead of iPhone8) and (eventually) contribution from new Healthcare products.

"This should sustain high levels of revenue growth and also drive margin expansion, resulting in long term high teens earnings growth."

Shares in Renishaw rose 1.93% to 2,849p at 1114 GMT.

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