Investment Rating - The report downgrades the investment rating of IMI Plc to Neutral from Buy, with a lowered 12-month target price of 2,120p, down from 2,220p [1][11]. Core Insights - The downgrade reflects revisions in estimates due to a sharp decline in US ISM manufacturing PMIs, updated capex trackers, IMI's 1Q25 trading update, and increased foreign exchange headwinds [1][11]. - The adjusted FY25 earnings per share (EPS) forecast is lowered from 133.1p to 129.8p, moving to the lower end of the group's guidance of 129p-136p [1][11]. - The report anticipates a balanced risk-reward scenario for IMI in the upcoming quarters, with expected growth in Climate Control and Life Science & Fluid Control businesses, despite headwinds in short-cycle businesses [2][11]. Financial Forecasts - FY25 revenue is projected at £2,238.1 million, with a reduction in sales, adjusted EBIT, and adjusted net income forecasts by approximately 5% each [1][8]. - The adjusted EBIT margin forecast remains unchanged at 20.1%, reflecting a shift towards the Automation segment [1][8]. - The report indicates a 9% reduction in FY25 free cash flow forecasts due to lower earnings and an increase in capex by approximately £10 million [1][8]. Segment Analysis - The Automation segment's growth forecast has been lowered, primarily due to a 7% year-over-year decline in Q1 and a significant drop in the US ISM manufacturing PMIs [12]. - The Life Technology segment's forecast reflects a modest recovery in demand, while the Transport business is under strategic review due to anticipated declines [13]. - The Climate Control segment is expected to grow by 4.2%, benefiting from ongoing demand for energy-efficient HVAC products [13].