Source: Sharecast
The bank has cut its target price from 3,100p to 2,850p for the stock, which was down 2% at 3,069p by 1005 BST.
"While shares have fallen 14% since July, they are +4% ytd, outperforming instrumentation peers by c.25% with the shares de-rating by 10% less than peers who have already cut guidance on China, life sciences and semiconductor end markets," said analyst Lushanthan Mahendrarajah.
In a research report ahead of the company's third-quarter update on 31 October, Mahendrarajah said that newsflow since Spectris's interim results in late-July suggests orders will have continued to soften, and so cuts to 2024 forecasts are likely.
"With the shares trading on 11.4x 12-month forward consensus EV/EBIT, in line with its historic discount to instrumentation peers and a lower discount to Oxford Instruments versus history, we do not believe risks are reflected in the share price and remain underweight," the analyst said.