Halma Coverage Reinstated at Buy as BofA Notes Defensive Growth Profile
BofA Global Research restarted its coverage of Halma (HLMA.L) with a buy rating and a price objective of 46 pounds sterling, which implies an upside potential of 23.3%. "We like [Halma's] 1) defensive c.5-6% organic through-cycle growth, 2) self-funded M&A strategy, and 3) exposure to data centre photonics, which lifts organic growth to an 11% CAGR up to '29E. Meanwhile, the recent sell-off, following disappointing photonics guidance, creates a buying opportunity," the research firm said in a Wednesday note. "We are 230/130bps ahead of consensus organic growth in FY28/29E, supported by sustained hyperscaler demand." Analysts added that the British safety technology company's defensive growth profile, accretive M&A strategy and photonics exposure justify a "significant" premium to its quality compounder peers in the European industrials space.
BofA Global Research restarted its coverage of Halma (HLMA.L) with a buy rating and a price objective of 46 pounds sterling, which implies an upside potential of 23.3%. "We like [Halma's] 1) defensive c.5-6% organic through-cycle growth, 2) self-funded M&A strategy, and 3) exposure to data centre photonics, which lifts organic growth to an 11% CAGR up to '29E.
Meanwhile, the recent sell-off, following disappointing photonics guidance, creates a buying opportunity," the research firm said in a Wednesday note. "We are 230/130bps ahead of consensus organic growth in FY28/29E, supported by sustained hyperscaler demand." Analysts added that the British safety technology company's defensive growth profile, accretive M&A strategy and photonics exposure justify a "significant" premium to its quality compounder peers in the European industrials space.