- Smiths Group
- 12 February 2025 11:19:45
Source: Sharecast
It said that following Smiths’ announcement last month that it was breaking up, it has moved to a break-up value sum of the parts, with an increased target price.
"Ahead of the planned exits of Interconnect and Detection, interim results on March 25th should give an opportunity for increased disclosure," Citi said.
"Key divisional questions that could support our bull case of £31.00 include growth underpinned by the installed base in John Crane, and the outlook for underlying margin and return on capital employed potential within Detection."
The bank maintained its ‘buy’ rating on the shares.
Smiths announced at the end of January that it was selling its electronic connectors unit and would demerge or offload the detection operation as part of a strategic review that includes extending its share buyback to £500m.
It said the break-up of the group was part of a plan to "unlock significant value and enhance returns to shareholders" after US activist investor Engine Capital said Smiths should explore a split.