Spirax-Sarco Engineering (SPX)

Sector:

Engineering

Index:

FTSE 100

7,645.00p
   
  • Change Today:
      25.00p
  • 52 Week High: 9,400.00
  • 52 Week Low: 5,900.00
  • Currency: UK Pounds
  • Shares Issued: 73.61m
  • Volume: 94,615
  • Market Cap: £5,628m
  • RiskGrade: 121

Berenberg starts \'outstanding\' Spirax-Sarco at \'buy\'

By Michele Maatouk

Date: Thursday 16 May 2019

LONDON (ShareCast) - (Sharecast News) - Berenberg started coverage of \"outstanding\" Spirax-Sarco Engineering at \'buy\' on Thursday as it took a look at the capital goods and industrial engineering sector.
The bank said that after a rocky fourth-quarter last year, the UK industrials sector has come back into vogue with the average stock in the coverage up 20% year-to-date and several names close to all-time highs.

Berenberg, which gave Spirax a 10,510p price target, said that its qualities and scalability warrant its premium valuation.

\"It has strong and resilient organic revenue growth (4-5% through the cycle), sector-high operating margins (23%), attractive returns on invested capital (more than 30%), strong cash generation (circa 90% free cash flow conversion) and 51 consecutive years of dividend growth,\" it said.

\"We perform a deep dive into its quality characteristics and conclude that it is a core long-term holding that absolutely warrants its premium valuation.\"

Berenberg also initiated coverage of Spectris and Rotork at \'hold\' with 2,440p and 280p price targets, respectively.

As far as Spectris is concerned, it said the company\'s financial performance has disappointed in recent years, but a management change and a strategic review have injected excitement into the story.

\"Although we think near-term trading poses several challenges, there are an exceptionally wide range of scenarios that could play out, ranging from underlying growth to material disposals.

\"The capital markets day (CMD) on 6 June and the H1 results on 30 July will be key dates in developing our conviction, for better or for worse,\" it said.

On Rotork, Berenberg highlighted the comprehensive growth acceleration programme being undertaken by the new chief executive, aimed at returning the group to mid-high single-digit revenue growth and mid-twenties margins.

\"Our view of this is mixed: 1) we believe the top-line target is achievable, so long as the oil price remains stable; 2) the mid-twenties EBIT margin target feels over-ambitious, and pushing too hard on costs risks damaging the business; 3) the balance sheet is one of the strongest in the sector, with firepower of up to £400m for the right series of deals.\"





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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

SPX Market Data

Currency UK Pounds
Share Price 7,645.00p
Change Today 25.00p
% Change 0.33 %
52 Week High 9,400.00
52 Week Low 5,900.00
Volume 94,615
Shares Issued 73.61m
Market Cap £5,628m
RiskGrade 121

SPX Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
99.32% below the market average99.32% below the market average99.32% below the market average99.32% below the market average99.32% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Price Trend
61.10% above the market average61.10% above the market average61.10% above the market average61.10% above the market average61.10% above the market average
51.22% above the sector average51.22% above the sector average51.22% above the sector average51.22% above the sector average51.22% above the sector average
Income
90.73% below the market average90.73% below the market average90.73% below the market average90.73% below the market average90.73% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Growth
77.17% above the market average77.17% above the market average77.17% above the market average77.17% above the market average77.17% above the market average
63.16% above the sector average63.16% above the sector average63.16% above the sector average63.16% above the sector average63.16% above the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 9
Sell 0
Strong Sell 3
Total 14
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

SPX Dividends

  Latest Previous
  Interim Final
Ex-Div 10-Oct-19 25-Apr-19
Paid 08-Nov-19 24-May-19
Amount 32.00p 71.00p

Trades for 15-Oct-2019

Time Volume / Share Price
15:11 70 @ 7,645.00p
15:11 50 @ 7,645.00p
15:11 22 @ 7,645.00p
15:11 15 @ 7,645.00p
15:11 28 @ 7,645.00p

SPX Key Personnel

CEO Nicholas John Anderson
Chair Jamie Pike

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