Smiths Group Share News (SMIN)

(Sharecast News) - Medical devices and security scanner maker Smiths Group got a boost on Thursday as Goldman Sachs upped its stance on the shares to 'buy' from 'neutral', highlighting a defensive profile and improving free cash flow.
Goldman said Smiths' defensive revenue profile is attractive given the uncertain macroeconomic backdrop. It pointed out that aftermarket/consumables make up more than 50% of group revenue, while US dollar exposure is around 50% of group revenue.

"Further, we believe recent Detection order wins should help to underpin FY20 revenues, John Crane is exposed to more resilient downstream oil & gas opex, and Medical's growth trajectory should improve following increased investment," the bank said.

In addition, it argued that the removal of Smiths Group's pension overhang, which is now in surplus, and continuing portfolio simplification should support the company's re-rating.

At 1320 BST, the shares were up 4.2% at 1,624p.