Deutsche Bank has begun coverage of Porvair (AIM:PRV) with a 'buy' rating, pointing to the company's long record of steady earnings growth.
Thomas Elgar, an analyst at the bank, set a price target of 1,050p, above the current price of 829.7p.
Porvair (AIM:PRV), a specialist industrial technology group, makes engineered filtration, laboratory and metal melt products.
The company operates as a diversified portfolio of businesses whose products are embedded in critical customer processes.
Demand is highly recurring, Elgar said, driven by consumable, maintenance and replacement cycles and supported by regulation and accreditation requirements.
That reliability has funded a successful buy-and-build strategy, in which the group expands by acquiring smaller companies and integrating them.
Over 15 years, Porvair has delivered compound earnings per share growth of around 15% a year.
That is roughly five times the rate achieved by the wider UK engineering sector, according to the bank.
Elgar highlighted the consistency of that performance, noting earnings had failed to advance year on year only during the pandemic.
The bank expects a faster pace of acquisitions and stronger monetisation to build on that track record.
