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Oxford Instruments too pricey

Demand for Oxford Instruments' nanotechnology tools is booming, but a lot of good news is already reflected in the share price
February 13, 2013

Oxford Instruments' (OXIG) third quarter contained little to excite the bulls and the high-tech instrumentation specialist's shares pulled back as a result. Demand for nanotechnology tools and services continue to grow, much as it did in the first half, and despite ongoing softness in the cyclical industrial products division, management is happy with progress.

IC TIP: Hold at 1716p

Hitting the target for 14 per cent adjusted operating margin by 2014 is a near certainty then, especially after a 200 basis point increase during the first half to 13.9 per cent and rapid growth in China. Still, that failed to tease meaningful earnings upgrades from analysts, and it's the same this time.