UBS has increased its price target for Halma PLC (LSE:HLMA) to £37.30, up 16% from £31.50, while reaffirming its 'buy' rating.
The upgrade reflects a roll forward of earnings estimates and peer valuations, alongside growing confidence in Halma’s premium market position.
The Swiss bank also raised its full-year organic growth forecast to 8.4%, driven largely by the Photonics division’s expected 18% expansion and an 8% growth outlook for the Safety segment. Margin estimates remain steady.
Using its proprietary HOLT framework, UBS highlights Halma’s exceptional quality and growth credentials, with the company ranking near the top among European peers in terms of competitive advantage and low volatility.
Despite trading at a premium valuation (around 24 times forward earnings before interest and tax), the bank believes Halma’s combination of strong growth and low risk justifies this premium, supported by a sum-of-the-parts valuation pointing to upside potential.
In afternoon trading, the shares were up 1% at £32.46.