Broker snap: IMI remains a well managed business, says Jefferies

9th May 2013 11:32

Jefferies International analysts said IMI remains a "good, well managed business" despite a slow start to the year for the engineering company.IMI reported a 3.0% drop in group revenue in the four months to April, reflecting poor commercial vehicle sales in Europe and the US. However, the group remained confident it would deliver progress over the full year in 2013."IMI has reported its first quarter interim management statement (covering trading for the first four months of the year) that is, in our view, a solid update," Jefferies said. "Indeed, we feared it might have been a touch softer, hence we are comforted in that respect. Year to date sales are slightly down year-on-year (in-line with management's expectations) and, as we have seen across the industrial sector, there is a working assumption that the second half activity picks up. IMI remains a good, well managed business."The broker issued a 'hold' rating and target price of 1,405p. RD