The stock is trading at £13.59. The share price is broadly unchanged since the company posted a 20% decline in first-half pre-tax profits in March. Although the stock came close to breaching the £12 mark on a couple of occasions, it has since managed to pull back those losses.
In May the engineering company issued a profit warning as tougher capital requirements and an extra cost of £4 million, providing long-term contracts hit the bottom line. Smiths Group also cited the strength of sterling as a reason for profit warning. However, the pound has declined in value since then which is beneficial to the company.
Equity analysts are a touch on the bearish side. Out of the 17 recommendations, four are buys, five are holds and eight are sells.
The stock is receiving support at the 200-day moving average of £13.38. If cost-cutting continues the stock could target £14.45.