RBC Capital Markets raises target price on Spirax.
RBC Capital Markets hiked its target price on thermal energy and fluid technology manufacturer Spirax from 6,000p to 6,800p on Wednesday following the firm's full-year results.
Source: Sharecast
The Canadian bank said Spirax's results had touched on most of its key focus areas - limited growth in steam, recovery potential in ETS in Watson-Marlow, and the need for improved return on invested capital.
Overall, RBC Capital stated that while Spirax reported FY25 profits roughly 2% ahead of expectations, it had also chosen to cut its 2026-28E earnings per share estimates by 3% per year.
"While in part this is currency driven, it also reflects lower ongoing growth assumptions in steam (with 2026E forecasts at only 2% following the 1% in 2025)," said RBC. "We retain an 'underperform' rating, though do increase our price target to £68 as we moved to a 2026E base year."
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