Spectris Share Price (SXS)

https://www.proactiveinvestors.co.uk/companies/news/980818/spectris-boosted-by-strong-start-to-the-year-and-share-buyback-980818.html

Rights issue can't be helping.

Seems like a pretty sound trading update to me. Recognises supply chain issues holding them back but otherwise firing on all cylinders. Any thoughts ?

(Not mine by the the way :) ) Earnings call on the way too......

Nov 26, 2015 at 05:00 Spectris profit down as weak trading persists Profit at precision instrument maker Spectris (SXS) is not measuring up, according to Deutsche Bank. Analyst Liz Bebb retained her ‘hold’ recommendation but reduced her target price to £18.30. The shares rose 20p to £17.21 yesterday. ‘Weaker trading conditions after the first half and resulting lower drop-through to the bottom line is not offset by cost reduction measures,’ she said. ‘We therefore reduce our earnings per share expectations for full-year 2015 and 2016 by 11-12%. We expect H2 2015 weakness to persist and have reduced segment profit expectations by 9% to £179 million, in line with management guidance. ‘For full-year 2016 estimates, organic growth is expected to be 1% to 1.5%, slightly below the level needed to offset underlying cost inflation; however, benefits from the cost restructuring program undertaken in H2 2015 are expected to offset the remaining inflation, leading to broadly flat margins year-on-year.’