DAVY VIEW

Spectris delivered a resilient Q3 trading update with organic revenue remaining in double digits. Order book visibility gives the Board confidence to provide a small FY23 adjusted EBITA upgrade. We upgrade our FY23E adjusted EPS by 2.6%. Growth is slowing and order intake normalising, but there is no sign of shipment deferrals seen elsewhere in the sector. EPS momentum is set to slow, which we see fairly reflected in the valuation. We reiterate our ‘Neutral’ rating. A small peer group de-rating more than offsets our EPS upgrade to reduce our price target by 20p to 3,280p