Berenberg Lifts Smiths Group Estimates, Price Target on 'Resilient' FY26 Results; Buy Maintained

06:21 AM EDT, 09/23/2026 (MT Newswires) -- Berenberg raised its forecasts for Smiths Group (SMIN.L) in a Wednesday research report, as analysts noted the industrial engineering company's "resilient" fiscal 2026 results. For the 12 months ended July 31, 2026, the company reported organic revenue growth of 1.2% and a headline operating profit margin of 20.6%. Meanwhile, Berenberg said the group's fiscal 2027 outlook of 4% organic revenue growth and 21% headline operating profit margin was "robust" given current challenging market conditions. "[The FY27 guidance] also includes assumptions that H1 remains tough in the Middle East and in US housing markets while FY26 comps (H1 comps are tougher in John Crane, easier in US construction) mean that growth phasing will vary between divisions," analysts added. Against this backdrop, Berenberg raised its EPS forecasts by 6.6% for 2027, 1.7% for 2028, and 2% for 2029, alongside higher sales and EBIT estimates. "The group's focus on innovation through its two high-quality divisions and the ongoing share buyback will ultimately leave the group looking undervalued, in our view; we maintain our Buy rating," the research firm wrote. The stock's price target was increased to 32 pounds sterling from 30 pounds.