JP Morgan has upgraded Spectris PLC (LSE:SXS) to 'overweight', citing improving market conditions and potential upside to earnings expectations.
The bank has also increased its price target from 2,650p to 3,450p. Its analysts noted that key markets for Spectris are stabilising or showing signs of recovery.
JP Morgan’s forecasts for Spectris’ 2025 adjusted earnings bep.fore interest, taxes, and amortization are now 5% above consensus estimates, with a more optimistic scenario suggesting a 9% increase.
While the shares have seen gains in recent weeks, the American house believes they are still trading at a discount to historical averages and remain undervalued compared to industry peers.
In fact, it expects confidence in the company’s earnings to strengthen as order momentum improves, with more clarity likely at the upcoming full-year 2024 results.
Spectris specialises in precision measurement and control technologies, providing high-tech instrumentation and software for industries such as manufacturing, pharmaceuticals, and energy.
The company’s products help businesses improve efficiency, quality, and safety in complex industrial processes.
The shares were up 48p at 3,050p.