On Friday, HSBC analyst Stephan Klepp adjusted the price target for Halma Plc. (HLMA:LN) (OTC: HLMAF), a leading security, health and environmental technology group, to GBP2.60 from GBP2.65. The company maintained its hold rating on the stock.
Klepp commented on the latest trading statement from Halma, describing it as “short, but reassuring” amid a soft trading climate. The analyst pointed out that Halma's diversified portfolio has historically allowed the company to perform well even when market conditions are not so good. However, he noted that foreign exchange (FX) headwinds are likely to lead to a slight reduction in valuations, a situation that is expected to affect all UK industrial companies due to the strong British pound.
The next financial report from Halma is expected for the first half of the 2025 financial year, which is scheduled for release on 21 November 2024. The HSBC analyst expects a small currency-related adjustment to their estimates, around 1-3%, leading to a new target price of -2,600p, down slightly from the previous target of 2,650p.
Klepp concluded that Halma's valuation appears to be full and believes there is little short-term liquidity risk in the company at this time. This suggests that the current stock price may reflect the company's value and expected performance in the near future.
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