Deutsche Bank reiterates 'buy' on Spirax Sarco

Analysts at Deutsche Bank reiterated their 'buy' recommendation on shares of Spirax Sarco on the back of the engineer's shift away from special dividends and towards non-organic growth.

The broker highlighted how over the past six months the firm had spent £540m scooping up Chromalox, Gestra AG and Aflex House.

That was roughly five times the amount spent over the preceeding 10 years and followed its 2014 strategic review, in which management set out leveraging strengths in key sectors, expanding the addressable market and capitalizing on the most attractive opportunities as its main objectives.

"We view reinvestment in M&A as a welcome move away from a recent track record of special dividends, with £190m distributed 2010-14.

"We reiterate our Buy rating on Spirax Sarco based on the accelerating evolution and growth profile of the company."

Deutsche Bank also stuck to its 5,785.0p target price on the shares.