Broker snap: Nomura downgrades Smiths Group to reduce

7th Oct 2011 12:29

Nomura has downgraded Smiths Group, the medical devices and airport scanner maker, from neutral to reduce, saying that the firm is "likely to grow slower than other companies in our coverage universe"."Smiths Group is a conglomerate of five businesses and its end market exposure is one of the most diversified, which normally gives the group stability. This looks now uncertain as sales are 40% to the public sector and only 15% to emerging markets."Nomura says that John Crane, the firm's provider of products and services for the major process industries, is the only division (out of five) that is "guiding clearly for growth" in the current year. The broker cuts its growth and margin assumptions.As a result, the target price is cut from 1,150p to 1,050p.By 12:29, shares were 1.32% lower at 937.5p.BC