Shore Capital gave a boost to Porvair PLC (LON:PRV) on Monday with the City broker initiating coverage on the environmental technologies group with a ‘buy’ rating and an implied fair value of 540p.
In late morning trading, Porvair shares were 2.4% higher at 435p.
READ: Porvair sees strong order intake in the third quarter
In a note to clients, ShoreCap’s analysts noted that Porvair designs and manufactures filters and other equipment that support the global aviation, energy, laboratory supplies, molten metals and wider industrial markets.
They pointed out: “Demand for its products is driven by strict regulations and the solutions they provide in tackling global environmental problems, such as the need for clean water.”
The analysts added: “With the share price at a 21-month low, we regard this as an excellent opportunity to invest in a double-digit growth company with highly defendable profit streams.
“We think there is scope for the company to grow at a faster rate than that implied in current consensus forecasts. Our DCF and historical P/E analyses imply a fair value of 540p (25% upside). Therefore, we initiate coverage of Porvair with a BUY recommendation.”