Peel Hunt and Panmure Liberum have both raised their price targets for Halma PLC (LSE:HLMA) after the safety technology group posted record full-year results and issued upbeat guidance.
Last week, Halma confirmed revenue rose 11% to £2.25 billion and adjusted profit before tax jumped 14% to £459 million.
All three business sectors delivered organic growth, with the Environmental & Analysis division leading the way thanks to strong demand in photonics.
Peel Hunt, which lifted its target price from 3,000p to 3,280p, described the outturn as "another successful year".
It expects earnings to grow a further 7% in financial year 2026 and views Halma’s valuation premium as justified, given the group’s track record and outlook.
Panmure Liberum was even more bullish, raising its price target to 3,340p and reiterating its 'buy' rating.
The broker expects debt to fall sharply this year, giving Halma headroom for more dealmaking.
It also flagged the group’s consistency in maintaining high margins and returns while continuing to invest in future growth.
Both brokers expect the engineer to grow organic sales by 7-9% in the year ahead, with foreign exchange expected to drag on reported figures.
Even so, earnings momentum and capital discipline appear intact, underpinning confidence in the long-term growth story.
Halma shares rose 44p to 3,156p.