Smiths Group Reinstated with Buy Rating at Goldman Sachs, Shares Slip

Goldman Sachs reinstated coverage of Smiths Group (LON: SMIN) on Thursday, August 6, 2026, with a Buy rating and a price target of 3,150 pence, signalling meaningful upside from current levels for the diversified industrial technology group.

In its note, Goldman Sachs pointed to Smiths’ recently simplified corporate structure as a key catalyst, arguing it “should result in higher margins, returns, and growth potential” going forward. The bank framed the restructuring as a strategic positive that sharpens the group’s focus and improves its long-term earnings profile.

Goldman also highlighted the company’s capital return program as a supportive factor for the stock. Smiths currently runs the largest buyback program within the firm’s coverage universe, which analysts said “should provide some downside protection” for shareholders even amid broader market volatility.

Despite the bullish reinstatement, Smiths Group shares were trading lower on the day, changing hands at 2,677p, down 22 points or roughly 0.8%, against a previous close of 2,699p. The stock had opened at 2,693p and traded in a range between 2,677p and 2,717p during the session, with volume of around 725,000 shares.

The muted share price reaction suggests the market may have already priced in some optimism around Smiths’ restructuring efforts, even as Goldman’s 3,150p target implies substantial headroom from current trading levels.

Investors will likely watch for further detail on the buyback pace and margin trajectory in upcoming updates as confirmation of the thesis Goldman has laid out.