RBC Capital upgrades Electrocomponents to 'outperform'

(Sharecast News) - RBC Capital Markets upgraded Electrocomponents on Tuesday to 'outperform' from 'sector perform' and hiked the price target to 1,350p from 1,070p as it said the company will be a long-term winner.
"We have been fans of ECM for a while and believe the pandemic has further strengthened its competitive advantage given its digital and web capability, stock availability and omni-channel superior service proposition," RBC said.

"We see strong potential for further market share gains, believe mid-teen margins are achievable from a number of levers (and now factor this in by 2026) and see further M&A as an incremental value driver."

RBC said its medium-term forecast increases drive the uplift in the target price.