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(Sharecast News) - Analysts at Berenberg raised their target price on industrial and electronics products distributor Electrocomponents from 890.0p to 1,230.0p on Tuesday, highlighting that the firm had continued to win market share in the first half of its trading year, especially on the industrial side of its business.
Berenberg stated that Electrocomponents had delivered a "strong" set of first-half results, with interim like-for-like revenue growth of 31% year-on-year or 22% versus two years ago.
While the analysts acknowledged that profitability had been affected by supply chain challenges and inflationary pressures, they also pointed out that operating margins had increased 350 basis points to 12.0%, with APAC operating margins up to 9.7%.
Berenberg said market share drivers were varied, ranging from product breadth and availability to value-added solutions, giving it confidence that Electrocomponents can continue its "impressive" track record of market outperformance over the long-term.
The Gerrman bank, which reiterated its 'hold' rating on the stock, also highlighted that the group had issued a "comprehensive" environmental social governance action plan, including a commitment to net-zero by 2030.
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