Smiths forecasts trimmed as John Crane recovery slows Proactive uses images sourced from ShutterstockSmiths Group (LSE:SMIN) is expected to face a slower recovery at its John Crane division as disruption linked to the Middle East continues into the next financial year, according to Citi. The bank lowered its underlying forecasts for the engineering group by around 2% for the 2027 financial year, although its expectations for the current year remain broadly unchanged. Citi analyst Martin Wilkie retained his 'buy' rating, arguing that Smiths could command a higher valuation as profit margins improve over the next two to three years. John Crane, which makes mechanical seals and other equipment for energy and industrial customers, has experienced a drag from the Middle East and Wilkie expects part of this pressure to continue into next year, delaying the division's recovery slightly. The bank's forecasts were also updated to reflect the earlier-than-expected completion of the sale of Smiths Detection at the end of June.