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Spirax-Sarco Drops After Flagging Possible Currency Hit -- Market Talk

Dow Jones Newswires ·  Nov 17, 2021 05:00

0950 GMT - Spirax-Sarco Engineering shares top the FTSE 100 fallers, down 5.8% after the steam-systems group said exchange rates could hit its full-year sales and profit by close to 4%. RBC Capital Markets said the update for the four months to October appeared in line with expectations, though it highlighted supply-chain disruption facing the company. With the shares up 17% since early October and at new all-time highs, they look expensive for an 'in-line' performer, RBC says. "Spirax is a high-quality business, in our view, but our underperform rating reflects its absolute and relative valuation, which appears challenging," RBC analyst Mark Fielding says. (philip.waller@wsj.com)

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