Avingtrans Share News (AVG)

Shares in Avingtrans, the designer, manufacturer and supplier of critical components and associated services to the energy, medical, industrial and global aerospace sectors, set a fresh 52-week high on Monday morning on news of a contract extension.The group's C&H subsidiary (Aerospace division) has signed a 3 year contract extension with its largest customer, a market leading Midlands based aerospace manufacturer.The extension to the contract is worth about £5m over three years, starting from the beginning of this year. It is a continuation of the original agreement of January 2006 to provide precision surface polishing and finishing of a range of aerospace components to an exceptionally high quality level."This builds on the line of significant long term contracts that Avingtrans has signed with blue chip customers over the last 18 months and is aligned to our goal of becoming a supplier of choice to global manufacturing players in the Aerospace, Energy and Medical markets," said the company's chief executive, Steve McQuillan.Not surprisingly, house broker finnCap was in ebullient mood following the contract extension, saying it underpinned its existing forecasts."Recent results show that the group has turned the corner, and it is now also demonstrating it appears to be on a roll with a flow of new contract awards," finnCap analyst David Buxton said."We see upside to the shares, with a price target of 68p based on a 11x fair value. This gives plenty of scope for further appreciation," Buxton claimed.