CFRA has reiterated a Buy rating on Halma Plc. (HLMA:LN) (OTC: HLMAF) with a steady price target of GBP31.00. The firm's analyst supports this target based on a projected P/E ratio of 36.5x for the fiscal year ending in March 2025 (FY 25), reflecting Halma's consistent revenue and margin growth.
Halma's recent trading update on September 26, 2024, highlighted the company's strong performance and reaffirmed guidance for FY 25. The update indicates robust organic constant currency revenue growth for the first half of FY 25, driven by order intake exceeding last year's revenue of GBP950.5 million.
The company's strategy of blending organic growth with strategic acquisitions, particularly in the Safety sector, has been a key strength. Halma completed four acquisitions in the Safety sector during the first half of FY 25, with a combined maximum consideration of approximately GBP85 million.
CFRA expresses confidence in Halma's business model, emphasizing the company's defensive growth strategy and active pursuit of mergers and acquisitions. The analyst's positive outlook for Halma underscores solid order intake and a promising acquisition pipeline for sustained strong performance through FY 25.
InvestingPro Insights on Halma
Halma's strong performance is further supported by InvestingPro's real-time data and insights. With a market capitalization of $12.41 billion, the company demonstrates significant industry presence. Its revenue growth of 9.79% over the last twelve months and 10.88% in the most recent quarter aligns with robust organic growth.
InvestingPro Tips highlight Halma's consistent dividend payments for 33 consecutive years and dividend increases for 9 consecutive years. This reflects the company's financial stability and commitment to shareholder returns, complementing its growth strategy.
The company's P/E ratio of 35.32 and PEG ratio of 2.44 indicate a premium valuation, consistent with market confidence in Halma's growth prospects. For investors seeking more in-depth analysis, InvestingPro offers additional tips and insights.
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Analysis: Halma Plc. has received a Buy rating with a target price of GBP31.00, indicating optimism for its performance in FY 25. The company's strategic focus on organic growth and acquisitions, particularly in the Safety sector, has been well-received by analysts. With strong order intake and a robust acquisition pipeline, Halma is poised for sustained growth. Investors can consider the company's consistent dividend payments and premium valuation as indicators of financial stability and growth potential.