Next Fifteen Communications continues to impress the City with another batch of upgrades following its latest trading update.
Berenberg said forecasts both for organic growth (up by 24% year-on-year) and underlying profit margin in the fourth quarter were ahead of its estimates.
“Next15’s transition to a tech-and-data driven growth consultancy has fundamentally accelerated its organic growth outlook and medium-term margin potential, which we believe will drive a multi-year and material upgrade cycle.
"The market valuation is yet to reflect this and Next15, based on a very attractive growth-at-a-reasonable-price equity story, remains a top pick for 2022", said the broker.
Berenberg upped its earnings estimates for the next three years rise by 5% with 1,500p the price target.
Peel Hunt, meanwhile has raised its rating to' buy' from 'add', pointing out that reported organic growth was in excess of 15% in each business area; though the strongest performance continues to be in Customer Delivery and Business Transformation.
In addition, Next15 said it believes there is unlikely to be any lessening of momentum of client spend in the near term.
“While we expect inflationary cost pressures on talent in the future, management believes it can increase prices to mitigate pressures on margins. With the recent weakness in the share price, we upgrade from add to buy.”
Shares rose 13% to 1,230p.