Citigroup has downgraded Smiths Group to "neutral" after a post-results rally lifted the shares to a record high, arguing the engineer's recent progress is now fully reflected in its valuation.
The Wall Street bank moved off a more positive stance, keeping its price target at £30, following a jump in the stock on the back of Smiths Group's latest results.
Smiths, the FTSE 100 engineering group whose products span airport security scanners and industrial seals, has won praise for tidying up its balance sheet.
Citi noted it had made significant progress selling off assets and shedding legacy burdens, including historic pension and asbestos liabilities.
But with the shares hitting an all-time high, the broker reckons the good news is priced in.
Guidance for the 2027 financial year is broadly in line with what analysts already expect, Citi said, and it sees few catalysts to move the shares higher in the near term.
There is one potential source of upside.
A recovery in oil and gas markets could yet prompt upgrades to the company's growth forecasts for 2028.
For now, though, Citi has parked its rating at neutral, leaving its £30 target unchanged.
