Berenberg sees margin and revenue growth ahead for personal goods firm McBride plc (LON:MCB) and started covering the firm with a 'buy'.
The German broker targets 220p for the shares, which is a fair distance from the current price of 177p.
The group is in the throes of a far-reaching restructuring aimed at stemming declines in profitability, and returning it to profitability.
"Historically, McBride has been a mismanaged business with a lack of customer focus, overly bespoke product offering and broad manufacturing footprint," said the broker.
But under the new plan, it has reduced the number of products by over 20% and reduced the customer base by 75% to focus on the top 25% of customers, who generate 90% of gross profit
This has already had an effect but Berenberg reckons with further work, EBIT (earnings before interest and tax) margins can be lifted to 6.8% by 2019.