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(Sharecast News) - Analysts at Jefferies have hiked their target price for UK-listed TT Electronics from 110p to 175p, but kept a 'hold' recommendation on the electronic components and sensors manufacturer.
The broker said that the company has made "encourging operational progress" and volume recovery, as shown in its interim results last month, but there is "still more to do".
TT reported materially improved profitability, margin expansion and stronger commercial momentum in the first half, reflecting the restructuring and operational improvement programme launched last year.
Actions taken included: making the loss-making Cleveland EMS site profitable in the first half, closing the loss-making Plano Components site, and restructuring the group into three product-led divisions (Power, EMS and Components).
"There remains more to be done in 2H26F, and beyond, in order to improve operational efficiency, realise cost reductions, and capitalise on end market improvements," Jefferies said.
"We incorporate the updated guidance into our forecasts, reiterate our 'hold' recommendation, and increase our PT to 175p."
TT Electronics shares were up 0.2% at 175.4p by 1349 BST.
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