JPMorgan Cazenove upgraded Spectris on Monday to 'overweight' from 'neutral' and hiked the price target to 3,450p from 2,650p.
The bank said its analysis points to key end markets now improving - or bottoming - with multiple drivers of upside versus consensus expectations, leaving its 2025 adjusted EBITA forecasts 5% ahead and its blue-sky scenario 9% ahead versus expectations.
"While the shares have bounced in recent weeks, they still trade at a discount to its historical average despite being on trough earnings and a wider discount than average to Instrumentation peers which should improve as conviction in the earnings increase," it said.
"We look for further colour on order momentum to be supportive at the upcoming FY24 results."
At 1000 GMT, the shares were up 1.6% at 3,050p.