BUZZ-Halma: Jefferies sees lack of upside potential, cuts to "hold"

** Jefferies downgrades UK engineering firm Halma Plc to "hold" from "buy", the first rating cut by the brokerage since it started coverage in July 2015

** Says shares have now reached a level that sees group in uncharted territory, and its valuation no longer justifies a positive stance

** "The share price has risen by 65% since July-15 which is 22%-26% outperformance over the UK Industrial and UK Electrical sector over that time period" - Jefferies

** Says co remains a class act, a compounder, like Spirax Sarco it is a long-term core holding, but says it is too expensive and moves to the sidelines

** "We have nothing but admiration for Halma and there appear to be no chinks in the group's armor" - Jefferies

** Jefferies raises price target to 1,675p from 1,390p