Halma PLC (LSE:HLMA)’s first-half trading update shows the safety products manufacturer is as “solid as ever” despite the negative impacts of currency headwinds, analysts stated.
The FTSE 100-listed group cautioned that negative effects of a strong pound sterling will “continue in the second half of the year”, but encouraging organic constant-currency revenue growth and adjusted EBIT guidance have kept City analysts in good spirits.
However, the market may have already priced in this optimism - at 29 times forward price to earnings, “here is perhaps not enough incremental positive news to drive the shares higher near term”, said Stifel.
Peel Hunt offered a similar read on the results, calling them “encouraging, demonstrating the resilience of the Halma model even in mixed market conditions”.
Peel Hunt analysts “believe the premium is justified” on Halma shares and have therefore retained a hold rating with a 2,500p price target.
Halma shares added 2.4% to 2,659 following Thursday’s trading update.