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(Sharecast News) - RBC Capital Markets hiked its target price on thermal energy and fluid technology manufacturer Spirax from 6,000p to 6,800p on Wednesday following the firm's full-year results.
The Canadian bank said Spirax's results had touched on most of its key focus areas - limited growth in steam, recovery potential in ETS in Watson-Marlow, and the need for improved return on invested capital.
Overall, RBC Capital stated that while Spirax reported FY25 profits roughly 2% ahead of expectations, it had also chosen to cut its 2026-28E earnings per share estimates by 3% per year.
"While in part this is currency driven, it also reflects lower ongoing growth assumptions in steam (with 2026E forecasts at only 2% following the 1% in 2025)," said RBC. "We retain an 'underperform' rating, though do increase our price target to 68 as we moved to a 2026E base year."
Reporting by Iain Gilbert at Sharecast.com
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