Judges Scientific Shares Cut to Underperform at Jefferies as Macro Backdrop Mixed

Judges Scientific (LON: JDG) shares came under pressure after Jefferies issued a double downgrade on the scientific instruments group, citing a challenging macroeconomic environment and fading investor appetite for smaller cyclical UK names.

Jefferies cut its rating to Underperform from Buy and slashed its price target to 4,051 pence from 7,380 pence as part of its 2026 outlook for the capital goods sector.

The broker said the macro backdrop remains mixed, adding that investors show little desire to rotate into U.K. cyclicals given the uncertain demand picture.

The downgrade follows a cautious trading update from Judges Scientific, which has been navigating weaker conditions in the United States, a market that accounts for around one-third of group revenue.

Shore Capital said the company continues to face “uncertainties around U.S. federal funding for scientific research,” with order intake softening progressively through fiscal 2025.

Organic order intake fell 6 percent for the year, while U.S. orders dropped 23 percent amid delayed capital projects and reduced offshore wind activity.

Shore Capital also noted that revenue from Geotek’s Coring division is now expected to be recognised in fiscal 2027 rather than 2026, widening the near-term earnings gap. The broker cut its fiscal 2026 adjusted earnings forecast by roughly a third, reflecting lower revenue expectations and high operational gearing.

Despite the setbacks, Shore Capital highlighted that Judges Scientific has taken steps to streamline costs and reposition its portfolio, while maintaining strong cash conversion. The broker said long-term structural growth drivers remain intact but acknowledged that visibility remains limited until U.S. research funding stabilises.