LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg raised their target price on components designer and manufacturer DiscoverIE from 850.0p to 930.0p on Wednesday, stating the group's full-year results were evidence that its business model was as equally effective in a downturn as it was in an upcycle.
Berenberg stated DiscoverIE's 2021 full-year results impressed against "a challenging backdrop", with the firm's organic revenue decline limited to just 6% year-on-year, adjusted operating margins down just 30 basis points and cash generation accelerating.

The German bank, which reiterated its 'buy' rating on the stock, also highlighted that DiscoverIE achieved "a strong recovery" through the second half of the year and that adjusted earnings per share came in 8% ahead of its expectations.

Looking ahead, Berenberg said the outlook for DiscoverIE was "positive", with the group demonstrating "strong" organic momentum alongside "a healthy pipeline" of acquisitions and a balance sheet full of firepower to match.

"While there was plenty of evidence that DiscoverIE can outperform in an upcycle, the FY 2021 results emphatically illustrated that the business model is as equally effective in a downturn," said the analysts.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE