IMIAF - IMI plc: Strong Multiyear Trends Provide Tailwinds But Near Term Outlook Is Rocky
2024-06-24 18:07:17 ET
Summary
- IMI plc is a significant player in automation, flow/fluid control, and precision motion across a wide range of end markets in industrial and process automation.
- IMI shares have outperformed the broader industrial space, but there are signs of emerging or sustained weakness in multiple process automation, climate control, and life sciences markets.
- Longer-term drivers for IMI remain attractive, with exposure to above-average capex investment in automation, renewable energy, and emerging alternative energy sources like LNG and hydrogen.
- Valuation is mixed; while there is still long-term upside at this price, it's harder to argue for multiple expansion in the face of weakening end markets.
Investors who want a one-stock solution for participating in the long-term upside of automation could definitely do worse than to consider IMI plc (IMIAY) ( OTCPK:IMIAF ). Not only is this company a significant player in motion and control across a range of end markets, but the business is also active in areas like climate control and precision fluidics for life sciences and healthcare. All of that gives investors broad exposure to a wide range of end markets, not to mention longer-term growth drivers like factory automation, green energy, and life sciences....
IMI plc: Strong Multiyear Trends Provide Tailwinds, But Near Term Outlook Is Rocky