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(Sharecast News) - Goldman Sachs upgraded shares of engineer IMI on Wednesday to 'buy' from neutral' and lifted the price target to 2,020p from 1,780p, saying it sees around 30% upside versus 17% for the sector.
The bank said it sees IMI as a beneficiary of both a sustained capex super-cycle as well as a potential recovery in short-cycle industrial production, where recent ISM manufacturing PMIs suggest inventories may be approaching a trough.
"Our more optimistic view on demand across Critical and Hydronic Engineering supports FY25e sales/EPS forecasts that are circa 2%/5% above consensus," it said.
"Moreover, IMI's shares have historically outperformed during the trough-to-peak phase of the manufacturing PMI cycle, and we see scope for the shares to outperform over the next 12 months."
At 1035 GMT, the shares were up 4.6% at 1,623p.
