Renishaw gains on speculation probes may be used in iPhone 8

Stock in Renishaw shot higher on speculation the company's products are likely to be used in Apple's iPhone 8.

Redburn analyst Stephen Swanton is telling clients that a spate of "peculiar" data points has emerged in the Chinese machine-tooling market.

That, Swanton says, typically signals that Apple is ordering metrology tools for a pending iPhone launch.

If that is the case, earnings per share upgrades of between 10% and 30% are possible for Renishaw, the analyst points out.

Wotton-under-Edge-based Renishaw has never admitted to being a supplier to Apple but an iPhone 5 trailer showed a Renishaw probe being used in the making of the mobile´s casing.

Redburn rates Renishaw at 'Buy' with a target price of 3,233p.