No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Analysts at Berenberg hiked their target price on safety equipment business Halma from 2,450.0p to 2,700.0p on Thursday as it acknowledged the group's sustainable growth model was in action.
Berenberg previously hosted a fireside chat with Halma's chief executive Marc Ronchetti and chief financial officer Steve Gunning, the main focus of which was on understanding the company's sustainable growth compounding business model, which has delivered a 10-year 12% profit compound annual growth rate, and a 46th consecutive year of dividend growth.
The German bank said the group's corporate purpose, target markets, structural growth drivers and key enablers support a financial guidance framework that seeks to double earnings per share every five years and grow sales by 15% per year through organic and inorganic means, with strong cash flow from 20%+ operating margins supporting ongoing M&A.
Following Halma's "strong organic growth" at its recent FY25 interim results and "a clear strategy being executed well", Berenberg noted that the management team appeared enthusiastic about the opportunity ahead for investors.
"Halma trades on a 30.3x FY 2025 P/E and 23.6x FY 2025 EV/EBIT. While optically fully valued, Halma has demonstrated over many years an ability to deliver strong growth and excellent shareholder returns which we expect to prove attractive to many investors," said Berenberg, which reiterated its 'hold' rating on the stock.
Reporting by Iain Gilbert at Sharecast.com
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.
