- Oxford Instruments
- 19 June 2024 10:21:45
Source: Sharecast
Annual results from the industrial and scientific research tools group last week showed "good headline momentum", according to Berenberg, with revenues up 9.8% at constant currency.
Oxford Instruments also unveiled a new simplified business structure, where eight business units and six end-markets would be consolidated into just two divisions (Imaging and Analysis, and Advanced Technologies) and three core markets (materials analysis, semiconductors, and healthcare and life science).
Meanwhile, future medium-term targets – which included a 5-8% organic compound annual growth rate, margin improvements to above 20% a cash conversion projection of 85%+ – "appear reasonable", Berenberg said.
The broker has lifted its target price for the stock from 2,640p to 2,945p. Despite a 27% jump in the share price over the past two months alone, Berenberg said: "Its shares currently trade on an FY26 EV/EBIT multiple of 15.6x – a double-digit discount versus peers."
The stock was down 0.2% at 2,625p by 1019 BST.