0944 GMT - Smiths Group's strategic update goes further than expected and will likely be taken well by investors, Jefferies analysts say in a note. The engineering group will sell the Interconnect business and sell or demerge the Detection division and this is a sensible course of action, the analysts say. The company also announced it was increasing its share buyback to 500 million pounds and will likely return proceeds from any future disposal, two measures expected to be taken well, Jefferies says. What is yet unknown is what these businesses are worth, with Jefferies valuing both at over 2 billion pounds, and if the Detection business can be sold. "This is a positive update for the equity story, we believe," Jefferies says. Shares are up 11% at 2,072 pence.(anthony.orunagoriainoff@dowjones.com)
(END) Dow Jones Newswires
January 31, 2025 04:45 ET (09:45 GMT)
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