Spectra Systems has received an upgrade to forecasts and target price from WH Ireland after its renegotiation of a material contract with a longstanding customer.
Taking account of increased gross contribution and allowing for sales & marketing investment FY2023, FY2024 and FY2025 see PBT and EPS upgrades of 3.5%, 4.7% and 3.9% respectively to PBTA of US$8.0mln, US$8.5mln and US$12.2mln.
Fair value is now 320p (from 300p), with a near 7% yield also adding to the attractiveness of the investment, said the broker.