Renishaw Share Price Target Lifted But Jefferies Remains Cautious

Jefferies has sharply raised its price target on Renishaw (LON: RSW), the precision engineering group, to 3,530p from 2,450p in a note this week, citing faster-than-expected progress on profitability improvements.

The bank, however, maintained its Hold rating on the stock.

Analysts highlighted that Renishaw’s efforts to lift EBITA margins are “delivering ahead” of expectations. As a result, Jefferies has raised its EBITA forecasts for the company by 18% for fiscal 2026 and 8% for fiscal 2027.

The revision reflects greater confidence in Renishaw’s operational efficiency, even as questions remain over its longer-term growth trajectory and capital allocation strategy.

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The move comes just over four months after Jefferies upgraded Renishaw from Underperform to Hold, noting at the time that near-term earnings risks had moderated following a more resilient third-quarter update. Since then, analysts have pointed to encouraging signs of portfolio discipline and value-focused management actions.

Renishaw has faced headwinds in recent years, with margins under pressure and revenue growth proving uneven.

Earlier this month, Deutsche Bank lifted its target on the shares to 3,340p from 3,000p, also keeping a Hold rating.

Renishaw shares have been on the rise since April, and are now up over 12% this year. The stock has gained more than 42% in the last six months and over 33% in the last three months.