American investment bank Stifel has described as ‘impressive’ the latest trading update from discoverIE Group PLC, a designer, and manufacturer of customised electronics.
In the statement, discoverIE said its progress in the first half meant it was on track to meet full-year expectations.
It saw a 4% increase in sales at constant exchange rates, with 1% organic growth and 3% from acquisitions.
Operating margins are set to improve by 100 basis points year-on-year, aiding the company in achieving its FY25 target margin of 13.5%.
Design wins surged by 23%, with an estimated lifetime value of £190 million. The firm's diversified focus across sectors like renewable energy and medical technology has contributed to its resilient performance.
“This is another impressive update, again demonstrating the benefits of the group's strategy and tight operational management,” Stifel said.
“By avoiding cyclical industries and significant customer concentration, and focusing on customised electronics for structural growth markets, DSCV is able to trade through tricky demand conditions much more smoothly than most industrial companies.
“It has proved this in the past, and it appears to be well set up to prove it again this year.”
The share price, which has drifted 12% in the last month, traded sideways in the aftermath of the trading statement at 647p.
Four banks and brokerages covering the stock (Cavendish, Liberum, Peel Hunt and Stifel) see substantial upside with price targets pointed in a very tight range from 1,000p to 1,110p. Shore Capital rates the stock 'hold' at the current share price.