We have updated our forecasts for Renishaw ahead of the FY16 results tomorrow, as per our indications at the time of the Q3 update. Looking ahead, our FY17 PBT forecast of £85.0m assumes modest improvement in underlying growth and an increased sales contribution from irregular orders, supplemented by a material FX tailwind. We now expect a return to more positive news flow and momentum from Renishaw, and have increased our target price from 1905p to 2026p driven by higher sector multiples. However we believe this improved outlook is already more than reflected in the share price. Consequently we retain our Sell recommendation.
