Halma PLC's (LSE:HLMA) update pointed to "encouraging progress", analysts said, after the FTSE 100 group raised its full-year outlook.
The Amersham-headquartered safety equipment conglomerate now expects low double-digit percentage organic growth, up from its earlier guidance of a high single digit, sending its shares to new all-time highs.
Citi analysts said they think points to around a 3-4% upgrade to 2026 consensus revenue expectations.
"The upgrade is mainly driven by the strong growth (~40%) in photonics."
With adjusted EBIT margin guidance maintained at modestly above the middle point of the 19-23% range, Citi said it sees consensus adjusted pre-tax profit increasing to circa £510 million compared to the current consensus at £493 million and adjusted operating profit to at least £530 million before the expected one-off gain from disposals.
UBS analysts said they were also reassured by orders continuing to trend well with a book-to-bill ratio above 1.0x.
"We raise our revenue and profits estimates by circa 4% across FY26-27 to reflect the guidance upgrade," the UBS team said, driving a share price target upgrade to £40 [from 3,730p].
"We view this as another very strong print by Halma and continue to see an attractive compounding growth investment case in Halma, and hence reiterate our Buy rating."
Broker Panmure Liberum noted that the shares currently trade on at 32 times forecast earnings, a premium to the peer group, "but we believe this is justified given its low earnings volatility and acquisition track record which today's announcement continues to reinforce".