Premier Farnell will update the market on Thursday on how trading in the third quarter has progressed.
In its interims, pre-tax profit came in below expectations after a weak second quarter, and investors will be keen to see if this trend has changed at all in the usually weaker second half.
Peel Hunt said: “We expect trading trends to be broadly similar to those we have been hearing about elsewhere in the sector, with the UK and the US tough and continental Europe stronger.”
But the broker said the company represents a “very compelling buying opportunity” as its shares remain undervalued compared to its peers.
Trading on a price-earnings multiple of just eight, Peel Hunt said: “If Premier Farnell can make a good hire for its chief executive role, and then sell Akron Brass to de-risk the balance sheet, it will have made good headway towards bridging that valuation gap.”
Numis Securities is more concerned about the business, with its performance likely to be hampered by the management flux.
The broker also said that it expects “continued weakness in the UK” as Premier Farnell “continues to lose market share to Electrocomponents, Screwfix, Digikey and others.”
Significant announcements expected:
Interim: Miton Group (LON:MINI)
Trading statement: Premier Farnell (LON:PFL)
Companies trading ex-dividend: Zoopla (LON:ZPLA), Berkeley Group (LON:BKG), Betfair (LON:BET), Halfords (LON:HFD), Greene King (LON:GNK)
Economic: UK – Retail sales, CBI industrial trends surveys; US – Philadelphia fed index, jobless claims, current account, leading indicators