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Jefferies upgrades Renishaw and XP Power to buy on strong semiconductor cycle outlook

Analyst Insights
11 Sep 2026
Proactive Investors
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Bullish
Jefferies upgrades Renishaw and XP Power to buy on strong semiconductor cycle outlook

Jefferies has upgraded Renishaw PLC and XP Power Ltd to 'buy' ratings, anticipating a prolonged and robust semiconductor cycle that will boost earnings. Renishaw's price target was raised significantly, expecting mid-teens revenue growth driven by its Position Measurement division. XP Power's target was also increased, reflecting a strong recovery and a 50% rise in first-half order intake. Halma was upgraded to 'hold' after a sharp valuation drop, while Oxford Instruments remains at 'hold' with modest upside. The upgrades are supported by a 34-month chip market growth fueled by data center construction, with July sales up 135% year-on-year.

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