Broker snap: A 'great year' ahead for IMI

3rd May 2011 10:45

The current year is shaping up to be a "great year" for engineer IMI, according to UBS, which has raised its target price on the stock by a quarter.UBS notes that the group is seeing its best growth since the early 1990s, and - "assuming that IMI can tag along with its competitors" who have shown no letup in momentum in the first quarter - the broker ups its 2011 growth rate estimate from 6% year-on-year to 12% for IMI Fluid Power.IMI Fluid Power provides solutions which control air and other fluids in precision technological and engineering applications."We expect trends in Fluid Power to be the highlight of the update, and we have increased our estimates by 5% to reflect this. Other divisions should be robust, with Severe Service [engineered valve solutions division] being more about orders than margins, the latter may be weak," said the broker.The target price is hiked to 1,200p, from 950p, and a 'buy' rating is kept.---BC