Broker Snap: Investec recommends 'hold' for Spectris

"The difficult market conditions in the second half of 2012 provided a backdrop for Spectris to demonstrate the quality and resilience of its business model," Michael Blogg, an analyst at Investec, commented this morning.

"The difficult market conditions in the second half of 2012 provided a backdrop for Spectris to demonstrate the quality and resilience of its business model," Michael Blogg, an analyst at Investec, commented this morning.

"We have revised our estimates from a basis of ultra-caution to a level achievable in a low-growth environment, with upside potential if markets recover more quickly. The increase in our target price, driven by the 6-7% increase in our earnings per share (EPS) estimates, is not quite enough to justify a more positive recommendation than hold."

He added: "Spectris has the spread and market presence to deliver growth in most circumstances, augmented by its organic and bolt-on investments financed out of cash flows and overseen by a highly-respected management team.

"It is now within striking distance of the FTSE 100, where we believe it would not look out of place in terms of investment quality."

MF

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