logo-loader

City brokers repeat bullish views on discoverIE Group following recent Capital Markets Day

Published: 15:52 19 Mar 2018 GMT

Electronics
Analysts at Peel Hunt reiterated their 470p target price and 'buy' recommendation on discoverIE shares

Two city brokers reiterated their bullish views on discoverIE Group PLC (LON:DSCV) following the customised electronics supplier’s recent Capital Markets Day.

Numis Securities reiterated an ‘add’ rating and 455p price target and its analysts said the event “left us feeling confident about the Group's runway for further growth”.

READ: Numis ups target price for discoverIE after raising estimates following recent Dutch acquisition

In a note to clients, they added: “The key focus of the event was on giving a greater understanding of the product range, particularly within Design & Manufacturing (D&M).”

The analysts said the firm – formerly known as Acal PLC -  also provided some further detail on M&A plans, noting that discoverIE’s management reiterated their target for a 15% pre-tax return on investments (ROI) from acquisitions within two years.

They concluded: “Despite the re-rating over the last year, we believe that a favourable market backdrop, combined with the potential for further value-enhancing M&A, means that there is further for the stock to run.”

Peel Hunt repeats ‘buy’ and 470p target

Meanwhile, analysts at Peel Hunt also commented on discoverIE’s Capital Markets Day pointing out that the event “was very well attended and gave a clear account of the business, the long-term strategy, successful execution so far and the huge scope for further growth.”

The Peel Hunt analysts said: “With no new financial or trading information we leave our numbers unchanged, but reiterate our 470p target price and Buy recommendation.”

In late afternoon trading on Monday, discover IE’s shares were changing hands at 406p, down 1.5% on Friday’s closing price.

DiscoverIE Group CEO hails profit increase

  discoverIE Group PLC (LSE:DSCV) CEO Nick Jefferies speaks to Thomas Warner from Proactive London after the electronic component manufacturer released interim results for the six months to 30 September 2023 showing an increase in profitability. Jefferies gives an overview of the figures,...

on 5/12/23