Broker snap: Investec sees growing momentum at IMI

22nd Aug 2013 10:48

Investec has said that it is pleased with an in-line set of first-half results from engineering firm IMI, as it placed its 'hold' rating under review on Thursday.IMI delivered revenue of £1.09bn for the six months ended June 30th, unchanged from last year, while adjusted profit before tax (PBT) was up 1.% at £170.1m, slightly better than what Investec had pencilled in."Overall, however, we were pleased with the H1 outturn and we expect to maintain our current estimates, apart from a small positive adjustment for the shares bought-back in the tail-end of H1. Of course, the positive influence of this programme will increase as more shares are purchased in the coming months."The broker pointed out that IMI has already delivered around 47% of consensus full-year PBT expectations during a year that is expected to be second-half weighted."Although our full-year estimate is higher [than consensus], there is enough evidence in these results to support our view of better momentum in H2E and FY14E."Investec said that IMI's comments about order intake in the Severe Service division and the outlook for the truck sector in Fluid Power support its view on increasing momentum moving forwards.The stock was up 4.62% at 1,474.1p by 11:02 on Thursday.BC