Halma Shares: Analyst Remains Bearish Despite Better-Than-Expected Outlook

Jefferies raised its price target on Halma (LON: HLMA) shares to 2,490p from 2,140p in a note to clients this week following the company’s latest fiscal 2025 update, but the firm continues to rate the stock at “Underperform.”

In a note to clients, Jefferies analysts acknowledged that Halma delivered a better-than-expected outlook, highlighting improved performance at both Avo Photonics and the wider business. 

As a result, the firm increased its earnings estimates. However, despite the stronger guidance, the analyst maintained a cautious stance on the shares.

The price target upgrade marks a reversal from late April, when Jefferies had lowered its target from 2,200p to 2,140p. At the time, analyst David Farrell used data from Companies House filings to assess 13 of Halma’s 47 standalone businesses, contributing to a more conservative view.

Jefferies’ continued Underperform rating suggests that, while operational improvements are acknowledged, the current share price may not justify further upside.

Halma shares gained over 3% in Thursday’s session and are up around .5% so far on Friday. This year, the stock has risen over 18%, while in the last 12 months it has gained more than 33%. It currently sits around the 3,136p mark.

Back in February, HSBC also turned bearish on Halma, downgrading the stock to “Reduce” from “Hold,” despite raising its price target to 2,760p. HSBC warned that the shares had become “too expensive” after a rally earlier in the year.