Berenberg lowers target price on Judges Scientific

Earlier in the week, Judges Scientific published a trading update that H2 revealed orders that it was relying on to meet market expectations would no longer be delivered in time.

However, Berenberg stated that in the context of "well-flagged, persistent end-market weaknesses", Judges' profit warning, while disappointing, was perhaps unsurprising.

"Given the magnitude of the guidance revision, we think that this may be the last 'cut' in a tough cycle for Judges," said Berenberg.

But the German bank also noted that a number of orders that have slipped in H224 should be delivered in FY25, including a highly profitable Geotek coring contract, and pointed out that Judges will begin to lap a soft comparable period, which should again trigger positive year-on-year growth.

"When the dust settles we therefore think an attractive buying opportunity may present itself," added Berenberg, which reiterated its 'buy' rating on the stock.

Reporting by Iain Gilbert at Sharecast.com