Sharecast - The bank said it sees IMI (LON: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.
