TCM.L Share News (TCM)

(ShareCast News) - Analysts at Berenberg bumped up their target price for shares of Telit Communications after the company obtained certification for its LET Cat-1 solution in the US.Together with stronger seasonals in the backhalf of 2016 and a stronger US dollar the manufacturer of gear for the internet-of-things was set to return to growth.A strengthening would bost the company´s margins and positively impact on its valuation multiples, the broker said.Analysts Paul Morland also cited the broadening of Telit´s product portfolio with two small acquisitions during the first half, good traction for the new IoT Factory Solutions and an agreement to sell deviceWISE through SAP.Yet while management was condident on growth the company´s valuation contiued to lag those of its peer group, Morland said, with the stock trading at a multiple of just 6.3 times estimates for its fiscal year 2017 earnings before interest, taxes, depreciation and amortisation."This is well below the peer group and we see good upside for the valuation as forecast visibility improves during the second half," Morland said.The analyst also expected the delays to business in the US during the first six months of 2016 resulting from the lack of needed certifications to be made up in the second half.Morland reiterated his 'buy' recommendation on the shares and lifted his target price from 280p to 310p.