Berenberg lowers target pice on Judges Scientific
By Iain Gilbert
Date: Monday 20 Jan 2025
(Sharecast News) - Analysts at Berenberg lowered the target price on scientific instruments business Judges Scientific from 11,310.0p to 10,600.0p on Monday, citing "greater clarity" following the group's FY24 trading update.
Berenberg said Judges' update had confirmed that earnings per share were expected to be in line with current market expectations of 276.8p - within management's downgraded guidance range following its profit warning in November, albeit at the lower end.
The German bank also stated the update provided it with greater clarity on its H125 outlook, and with some signs of improving end markets, said it remains "optimistic" about the year ahead.
"The normalisation of scientific instrument end-markets, especially in China, and for higher-complexity tools, while painful, should be temporary. In FY25, we think that Judges is well positioned to return to growth and we expect a good performance in H1 2025. We expect the delivery of slipped projects (including the delivery of a sizable Geotek contract), alongside a broader end-market recovery, to contribute to stronger results versus the soft comparable period," said Berenberg.
The analysts noted that Judges' shares currently trade on 14.5x FY 2025 enterprise value/underlying earnings - roughly 15% below its 10-year average, which it reckons may make for "an attractive entry point".
Reporting by Iain Gilbert at Sharecast.com
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