Two city brokers reiterated their bullish views on discoverIE Group PLC (LON:DSCV) following the customised electronics supplier’s recent Capital Markets Day.
Numis Securities reiterated an ‘add’ rating and 455p price target and its analysts said the event “left us feeling confident about the Group's runway for further growth”.
READ: Numis ups target price for discoverIE after raising estimates following recent Dutch acquisition
In a note to clients, they added: “The key focus of the event was on giving a greater understanding of the product range, particularly within Design & Manufacturing (D&M).”
The analysts said the firm – formerly known as Acal PLC - also provided some further detail on M&A plans, noting that discoverIE’s management reiterated their target for a 15% pre-tax return on investments (ROI) from acquisitions within two years.
They concluded: “Despite the re-rating over the last year, we believe that a favourable market backdrop, combined with the potential for further value-enhancing M&A, means that there is further for the stock to run.”
Peel Hunt repeats ‘buy’ and 470p target
Meanwhile, analysts at Peel Hunt also commented on discoverIE’s Capital Markets Day pointing out that the event “was very well attended and gave a clear account of the business, the long-term strategy, successful execution so far and the huge scope for further growth.”
The Peel Hunt analysts said: “With no new financial or trading information we leave our numbers unchanged, but reiterate our 470p target price and Buy recommendation.”
In late afternoon trading on Monday, discover IE’s shares were changing hands at 406p, down 1.5% on Friday’s closing price.