Shares digital

Smiths Group (SMIN) 928.5p

Industrial group Smiths has warned of problems with the firm’s medical devices division. The arm, which makes products such as drips and ventilation devices, has been hit by supply chain issues. (Read the full story: www.sharesmagazine.com/node/3212)

Shares says: On a PE ratio of 13 the stock is not very cheap but there is the potential for the group to be broken up to create more value. HOLD

The Times says: There had been some speculation that the new chief executive Philip Bowman, who is seen as a serial deal maker, could use the occasion to signal a radical change and possible break-up of the group. But the company said only that trading was in line with expectations.

Reader - Mark Hatlewaite says: Bowman’s good but to have engineered a break-up in the few months that have passed since his appointment is too much to ask for. I expect news on this front later in the year.

The City says: The sale of the Medical division could potentially unlock around 165p a share, giving a 16% valuation upside. The earliest that an indication of the strategy would be given is at the interims on 19 March.