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Panmure Gordon initiates coverage of discoverIE Group as a ‘buy’

Published: 13:20 11 Dec 2019 GMT

discoverIE Group PLC - Panmure Gordon initiates coverage of discoverIE Group as a ‘buy’

discoverIE Group PLC’s (LON:DSCV) scope for growth makes it a ‘buy’ according to analysts at broker Panmure Gordon, which has initiated coverage of the firm with 615p target price.

The City broker's analysts noted that the customised electronics firm went from a distributor of electronic components to an international designer, manufacturer and supplier thanks to a strategy of acquisitions, with £300mln invested since 2011 and chances for more to come.

WATCH: discoverIE Group CEO talks strategy, focus on growth markets and future acquisitions

Another strong point, according to the Panmure Gordon analysts, is the focus on growing markets and structural shifts such as decarbonisation, which has been driving electrification.

They forecast that these markets are expected to increase annual organic growth by 4% this year and by 3% thereafter.

“We expect design & manufacturing to continue to drive growth and with management's objective to self-fund acquisitions longer term, we expect future acquisitions to become increasingly earnings accretive,” the analysts said in a note to clients..

“As current consensus excludes any future acquisitions, we believe there is significant opportunity for upgrades over the medium term,” they concluded.

DiscoverIE Group CEO hails profit increase

  discoverIE Group PLC (LSE:DSCV) CEO Nick Jefferies speaks to Thomas Warner from Proactive London after the electronic component manufacturer released interim results for the six months to 30 September 2023 showing an increase in profitability. Jefferies gives an overview of the figures,...

on 5/12/23