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Keep faith in Oxford Instruments

Oxford Instruments is trading in line with expectations, but investors have had an attack of nerves
September 11, 2012

Mere mention of "some softness" in order intake from its industrial markets helped chop as much as 10 per cent off Oxford Instruments' share price. In an otherwise innocuous update, Oxford confirmed good progress at its high-profit-margin nanotechnology tools and services divisions since the March year-end, and added that the industrial unit is trading in line with expectations, keeping the company on track to hit full-year targets.

IC TIP: Buy at 1288p

However, Oxford is highly rated - the shares trade on 19 times forecast earnings - and, clearly, there was some disappointment at the absence of earnings upgrades.