The manufacturing and research company saw its shares price drop rapidly from all-time highs earlier in the year, but today’s update may well put the fight back in the stock.
The third month of the year saw much improvement compared to the first two months, while they were also ahead of the same period in 2012. Order intake was higher in Asia, but North America saw the average level fall by 20%. Nonetheless, it looks as if the company will still meet expectations for the full year, with long-term prospects looking better.
This short update has had a substantial effect on the share price, which is up over 10% so far today. The company has fallen into the ‘growth’ category, with a high PE ratio of 32, but a return on equity of 16%. The company has enjoyed the benefit of expanding markets, with its wide geographical spread being a considerable advantage.
With the share price now looking much more promising than was the case a few weeks ago, there may be further gains in store; although investors might want to wait to see if the price can clear the £14 level first.