0710 GMT - RS's increased operating expenses guidance for FY 2027 prompted forecast cuts, Panmure Liberum analysts Sanjay Vidyarthi and Joe Brent say in a note. The industrial and electronics products distributor said it expects higher cost growth, rising interest and tax expenses due to underlying inflation rate, strategic investments and the integration of new acquisitions. Although current purchasing managers' index data shows positive trends in the short term, the analysts anticipate a sharp deterioration in these indicators stemming from the conflict in Iran. Panmure Liberum reduces FY 2027 adjusted pretax profit forecasts by 2.9% to 253.2 million pounds, and cuts earnings per share forecasts by 3.2% to 39.6 pence. "There is fundamentally a good business here, but patience will be required," the analysts say. Shares are down 0.2% at 665 pence. (anthony.orunagoriainoff@dowjones.com)

(END) Dow Jones Newswires

May 29, 2026 03:11 ET (07:11 GMT)

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