Engineering company Renishaw, whose core business is currently producing metrology tools which measure and calibrate the effectiveness of machine tools and component manufacturing is being tipped by analysts to surge in value over the next decade. The presumption is the Renishaw share price could take off if, as expected, the company continues to develop new products in brain surgery robotics and 3D printing – both sectors on the up.

Car plants and aircraft manufacturers are currently among Gloucestershire-based Renishaw’s biggest customers at present. However, both industries, particularly the latter, have taken a major hit from the Covid-19 pandemic. However, the engineer’s move into 3D printing and neurology have some analysts excited. German bank Berenberg recently told clients in a note that it believes these long-term investments could bear fruit over the next decade. If they come off, the bank believes Renishaw will be worth “multiples”, of its current £3.8 billion market capitalisation within a decade.

Renishaw has developed robotic arms that can be used in brain surgeries, while also working on a “potentially game-changing” treatment to deliver drugs (developed by a pharmaceuticals partner) directly into the brain.

Its 3D printing machine is already being used by some dentists to make crowns and dentures. 3D printing in dentistry is still an industry in its early stages but Berenberg estimates that it will be worth £5.5 billion by 2035, with Renishaw well placed to be a major player.

Anthony Plom, an industrials analyst at the bank wrote:

“It will likely take 10 to 15 years but, if successful, we believe these two businesses could add over £500 million in underlying earnings [per annum] and billions more in value to the group.”

Berenberg rates the Renishaw share price at £57. With their current market value £52.75, the bank tips them as a ‘buy’. The company’s share price has gained over 1.8% today, outperforming the flat FTSE 250 index, of which it is a constituent. The company was founded in 1973 and listed on the London Stock Exchange in 1984.