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23 September 2015
Diversified engineer and perennial break-up target/candidate Smiths Group (SMIN) is the UK Index ’s top beneficiary of stock-specific news this morning. Traders have pushed the shares off 2015 lows after FY15 results showed profits +5.6% in the face of revenues -1.7% as business conditions remained tough due to lower oil process and widespread growth uncertainty. CEO Bowman confirms the date for his flagged-up resignation as tomorrow, handing over as planned to GKN’s Andrew Reynolds, and leaving the group in a solid position (Medical Devices’ best growth in almost a decade, detection posting margin improvement and strong orders, John Crane helped by aftermarket strength). Are the shares set for a rebound towards 2015 highs around 1200p? Has the August 15% sell-off been overdone?
Mike van Dulken, Head of Research
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