Berenberg hikes target price on Solid State

(Sharecast News) - Berenberg hiked its target price on value added electronics group Solid State from 245p to 275p on Monday as it said the firm had delivered a strongerthanexpected set of FY26 results, with revenue coming in 1% ahead of guidance and more pronounced beats on adjusted underlying earnings and earnings per share - up 7% and 6%, respectively.

Berenberg said all three divisions - components, power and systems - had posted revenue and profit growth, underlining a "robust" performance across the group. Components revenue rose 8.1%, supported by design wins in the UK and US and improved conditions across industrial, defence and medical markets, while Power division revenues grew 15.6%, and systems delivered the strongest growth, with revenue up 48% on continued demand for communications products.

The German bank noted that Solid State's order book slipped 1% year-on-year to �102.4m, reflecting the inclusion of last year's �19m NATO Support and Procurement Agency award. Adjusting for that contract, however, its underlying order book grew 21%, and Berenberg said it remains optimistic that further communications orders could be announced this year.

Berenberg raised its forecasts and said Solid State's defence relationships, market penetration and exposure to longterm structural tailwinds make the shares attractive, noting the group trades on 16.5x FY27 earnings and 12x EV/EBIT.

Reporting by Iain Gilbert at Sharecast.com