HSBC has reiterated its ‘reduce’ rating on the recently rebranded Spirax Group. Equity analysts at HSBC reiterated their view on Spirax Group, previously known as Spirax- Sarco Engineering, ahead of full year results due 7th March.
HSBC Global Research sees little growth for the engineering group over the last year as Spirax’s Steam Specialities business falters and FX headwinds impact income.
HSBC analysts have an 8,400p price target on Spirax, significantly below the current 10,380p share price.
Although analysts see low single-digit revenue growth in the year ahead, they feel the stock is too expensive at 32x 2024 PE estimates.
In a trading statement released in November, Spirax said they were experiencing weak demand from Semiconductor Wafer Fabrication Equipment and Pharmaceutical & Biotechnology sectors.