Renishaw (RSW)

Sector:

Electronic and Electrical Equipment

Index:

FTSE 250

4,015.00p
   
  • Change Today:
      30.00p
  • 52 Week High: 4,370.00p
  • 52 Week Low: 2,950.00p
  • Currency: UK Pounds
  • Shares Issued: 72.79m
  • Volume: 10,485
  • Market Cap: £2,922.46m
  • RiskGrade: 147

Peel Hunt points to 'pivotal' years at IMI and Renishaw in sector review

By Iain Gilbert

Date: Monday 09 Apr 2018

LONDON (ShareCast) - (ShareCast News) - Analysts at Peel Hunt mulled over the UK industrials sector on Monday, giving investors some fresh insight on IMI and Renishaw in the process.
Peel Hunt highlighted 2018 as being "a pivotal year for IMI", as the broker expected to see the company generate organic revenue growth for the first time since 2014 as it enters the "up to full speed" phase of its strategy execution timeline.

The analysts pointed to the launch of IMI's first new platform products in Precision as a key driver, coming after its slightly disappointing new product launch process in Hydronics.

IMI's acquisition of Bimba for $198m was also likely to double its industrial automation presence in North America, something Peel Hunt expected to further infill in the current year.

Peel Hunt nudged its 2018 EPS number by 0.2p to 69.2p, while 2019 went up by 3.4% to 76.5p, with the of organic revenue growth predicted to top 3% followed by 3.9% and 3.8% respectively for 2019 and 2020.

"Our target price is based on a 2018 EV/sales, EBIT margin correlation of 1.4x, which comes through at 1,250p. On this basis, we can nudge our recommendation to 'add' from 'hold'," the analysts said.

On Renishaw, which Peel Hunt referred to as a "superb business", the analysts gave it a "premium rating", but noted it was "not bullet-proof", and that its communication with the market had not always been sufficient for it to feel completely comfortable with its forecasts.

Peel Hunt singled out some longer-term concerns about Renishaw's management succession scenarios, but noted that as shares were coming back to within 5% of its target price, it made the move to bump its recommendation back up to 'hold'.

Renishaw itself anticipates full-year revenues of £575-605m, and a pre-tax profit of around £136-156m, while consensus was at £599.6m and £140.1m, while the broker itself had pushed for £601m and £144.5m.

The analysts highlighted that Renishaw's key to profitability will be its progress in Healthcare, which it expects to break even by the end of FY19E.

"Our TP equates to a PER of 24.6x FY19e, a premium that reflects the quality of the Renishaw business," the analysts concluded.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Renishaw Market Data

Currency UK Pounds
Share Price 4,015.00p
Change Today 30.00p
% Change 0.75 %
52 Week High 4,370.00p
52 Week Low 2,950.00p
Volume 10,485
Shares Issued 72.79m
Market Cap £2,922.46m
RiskGrade 147

Renishaw Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
78.82% below the market average78.82% below the market average78.82% below the market average78.82% below the market average78.82% below the market average
77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average
Price Trend
33.91% above the market average33.91% above the market average33.91% above the market average33.91% above the market average33.91% above the market average
43.59% above the sector average43.59% above the sector average43.59% above the sector average43.59% above the sector average43.59% above the sector average
Income
82.35% below the market average82.35% below the market average82.35% below the market average82.35% below the market average82.35% below the market average
69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average
Growth
2% below the market average2% below the market average2% below the market average2% below the market average2% below the market average
37.14% above the sector average37.14% above the sector average37.14% above the sector average37.14% above the sector average37.14% above the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 3
Sell 1
Strong Sell 1
Total 7
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Renishaw Dividends

  Latest Previous
  Interim Final
Ex-Div 07-Mar-24 02-Nov-23
Paid 09-Apr-24 07-Dec-23
Amount 16.80p 59.40p

Trades for 17-Jun-2024

Time Volume / Share Price
12:34 2 @ 4,015.00p
12:33 90 @ 4,019.34p
12:09 11 @ 4,016.50p
12:02 38 @ 4,015.00p
12:02 31 @ 4,015.00p

Renishaw Key Personnel

CEO William Lee

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