Electronic sensors specialist TT Electronics PLC (LON:TTG) is a company transformed, according to Liberum Capital Markets, which has cranked up its price target.
The new price target is 300p, up from 240p, with the change taking place after the broker issued new earnings forecasts for the current year and next that are ahead of market consensus and “may yet prove too conservative”.
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“Disposals and recent acquisitions have transformed TT, which should result in more stable margins and better cash conversion, enhancing ability to make further M&A,” the company said.
TT announced the acquisition of Precision Inc, a designer and manufacturer of precision electromagnetic product solutions for critical applications, earlier this month, while in the first quarter it landed healthcare applications technology provider Stadium Group.
These acquisitions, along with some disposals, have reduced the cyclicality of TT’s business and improved its positioning for the proliferation of automation, robotics and medical diagnostics, Liberum said.
With the TT share price currently at 248.5p – up 12.5p following Liberum’s note – the broker rates the shares as a ‘buy’.