DiscoverIE has got an earnings upgrade from house broker finnCap following the acquisition of circuit board specialist CDT last week.
Forecasts for earnings in both 2023 and 2024 rise by 1%, with the broker noting that CDT’s product range is already used alongside a variety of discoverIE’s existing components.
Finncap adds that although worries over the macro-environment have hit the shares, its components are essential to customer projects and generally only represent a small part of the total cost.
Given the current macro pressures, that is a very good position to be in, adds the broker.
Results in June also indicated discoverIE is performing well against the macro headwinds and the long-term growth prospects remain undiminished, something underpinned by a record order book worth £224mln.
“All these points ensure discoverIE will stand out from the crowd and we anticipate a significant re-rating as the market stabilises or recovers,” concludes the broker, which left its target price unchanged at 1,220p against 629p today, up 0.5%.