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BUZZ-Smiths Group: Rises on positive U.S. tax legislation impact

(Updates shares, analyst quote)

** Engineering company Smiths Group (Frankfurt: QS2A.F - news) +2 pct, second biggest gainer on FTSE 100

** Co says net impact of U.S. tax legislation will be favourable over the medium term

** For yr ended July 2018, sees headline effective tax rate of 27.5-28.5 pct vs its previous guidance of c.30 pct

** Looking into yr ended July 2019 and beyond, the headline effective tax rate is estimated to be in the range of 23-25 pct, co says

** "Based on current consensus estimates we believe this implies a potential EPS upgrade of 2% in FY18 and 8% for FY19 and beyond ... Smiths was potentially one of the largest beneficiaries in the sector given it derives 52% of group sales in the U.S. at a 38% tax rate," Morgan Stanley (Xetra: 885836 - news) analysts say