On Friday, HSBC analyst Stephan Klepp adjusted the price target for Halma Plc. (HLMA:LN) (OTC: HLMAF), a leading safety, health, and environmental technology group, to GBP2.60 from GBP2.65. The firm sustained its Hold rating on the stock.
Klepp commented on the recent trading statement from Halma, describing it as "short, but reassuring" amidst a softer trading climate. The analyst pointed out that Halma's diversified portfolio has historically allowed the company to perform well even when market conditions are less favorable. However, he noted that foreign exchange (FX) headwinds are likely to lead to minor estimate reductions, a situation that is expected to affect all UK industrial firms due to the strong British pound.
The next financial report from Halma is anticipated for the first half of the fiscal year 2025, scheduled to be released on November 21, 2024. The HSBC analyst anticipates a small currency-related adjustment to their estimates, approximately 1-3%, which has resulted in the new target price of 2,600p, slightly decreased from the previous target of 2,650p.
Klepp concluded by stating that Halma's valuation appears full and believes there is minimal short-term earnings risk for the company at present. This suggests that the current stock price may already reflect the company's value and expected performance in the near future.
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