Berenberg increases his target price on Electrocomponents

Analysts Berenberg raised their price target on the distributor of industrial and electronic products Electrical components from 890.0p to 1,230.0p on Tuesday, pointing out that the firm had continued to gain market share in the first half of its financial year, in particular on the industrial side of its activity.

Berenberg said Electrocomponents reported a “strong” set of first half results, with interim comparable store sales growth of 31% year-over-year or 22% from two years ago.

While analysts acknowledged that profitability had been affected by supply chain challenges and inflationary pressures, they also pointed out that operating margins increased by 350 basis points to 12.0%, with APAC operating margins of 9.7%.

Berenberg said the market share drivers were varied, ranging from product scope and availability to value-added solutions, giving him confidence that Electrocomponents can continue its “impressive” track record of outperforming the market. long-term market.

The German bank, which reiterated its “conservation” note on the title, also stressed that the group had published a “comprehensive” social and environmental governance action plan, including a commitment to net zero by 2030.

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