Deutsche Bank has raised its price target on discoverIE Group PLC (LSE:DSCV), the specialist electronics manufacturer, to 910p from 870p, maintaining a Buy rating on the stock, which last closed at 786p.
Full-year results showed revenue of £443 million, up 5% year-on-year at constant exchange rates, with organic growth of 2% accelerating to 5% in the fourth quarter.
Operating profit came in at £61.0 million, in line with the bank's estimate of £61.3m, though the operating margin slipped 50 basis points to 13.8%.
Pre-tax profit rose 4% to £51.9 million, with earnings per share of 40.3p matching Deutsche Bank's forecast, and the dividend lifted 4% to 13p.
Net debt before IFRS 16 lease adjustments came in at £80.5 million, better than the £85 million the bank had pencilled in and down from £94 million in March 2025, giving a net debt to EBITDA ratio of 1.2 times.
That leverage rises to 2.2 times on a pro-forma basis after accounting for the recent acquisition of Trival, completed in April, and the pending acquisition of 3GMetalworx, expected to close in August or September, before reducing to 1.8 times by the end of the 2027 financial year.
