Broker snap: Halma gaining momentum

3rd Dec 2009 12:54

Results from engineering conglomerate Halma were towards the top end of expectations, Panmure Gordon reckons, reinforcing its conviction that the shares are worth buying.The group indicated it expects margins to improve in the second half of its financial year. 'Added to better than expected cash generation and an improved book to bill, the recovery gradient in its Industrial Safety division could provide some interesting momentum,' believes Panmure analyst Oliver Wynne-James.Lower net debt and the potential for bolt-on acquisitions adds to the investment case, the broker added. 'There is also the potential of a revenue surprise in February and March 2010E given the weak comparable,' Panmure Gordon notes.The broker's price target for Halma remains 275p.