Berenberg downgrades Oxford Instruments, says risk-reward fairly balanced.


Berenberg downgraded its stance on Oxford Instruments on Monday to ‘hold’ from ‘buy’ as it said the risk and rewards are fairly balanced.

  • Oxford Instruments
  • 18 May 2026 10:40:19
Oxford Instruments

Source: Sharecast

The bank noted that the shares have had a strong run, up 49% year to date and 63% over the past 12 months as the company has delivered its self-help strategy and benefited from semiconductor tailwinds, especially its exposure to compound semiconductor demand.

"With minimal changes to consensus forecasts, the significant re-rating has pushed the valuation to a level that, in our view, fairly reflects the risks and rewards," it said. "We believe further large orders in the Advanced Technologies (AT) division are needed to justify this valuation."

Berenberg said the share price is reflecting these orders being announced at the FY26 results on 9 June, providing scope for disappointment if the order book does not materially grow.

The bank said it was expanding its international peer group to include more listed semiconductor wafer fabrication equipment (WFE) peers. These increased multiples have led Berenberg to lift the price target on Oxford Instruments to 3,000p from 2,700p. It said the higher price target provides minimal upside.

At 1038 BST, the shares were down 1.8% at 2,902p.


Exchange: London Stock Exchange
Sell:
0.00
Buy:
0.00
Change: 109.54 ( 0.48 %)
Date:
Prices delayed by at least 15 minutes

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