£11.70 TP with risks to the upside.19 Apr 2021 12:42
Risks are to the upside for Electrocomponents (ECM) after the electronic parts distributor delivered a stronger than expected fourth quarter, says Liberum.
Analyst Sanjay Vidyarthi retained his ‘buy’ recommendation and increased the target price from £11.00 to £11.70 on the stock, which rose 18p, or 1.7%, to £10.99 on Friday.
The analyst increased his full year 2021 profit before tax forecast by 2.8% and 2022 earnings estimate by ‘a cautious 1.6%, with continuing freight costs and [foreign exchange] weighing, despite the expectation of strong sales momentum’.
‘We think the risks are to the upside as the year progresses, given the strengths of the digital model. We expect further synergistic acquisitions,’ said Vidyarthi.
My own TP is actually 1200p. Let's see.