Berenberg raises target price on Midwich

Analysts at Berenberg raised their target price on audiovisual distributor Midwich Group from 590.0p to 620.0p on Monday, stating the firm's recovery had begun.

Berenberg stated the recovery story it highlighted at Midwich was "clearly well underway", with the company indicating in its annual general meeting statement trading was "already ahead" of management expectations just four months into 2021.

The German bank said this prompted it to raise 2021 adjusted pre-tax profit estimates by around 10%, with smaller upgrades to outer years.

"The company is now quickly delivering on the strong position going into 2021 that we had highlighted at its FY20 results. The market has not yet taken notice, however, with Midwich only trading 26x P/E despite a forecast 32% earnings CAGR over the 2021E-2023E on our base estimates," said Berenberg, which also reiterated its 'buy' rating on the stock.

"We still believe there may be further upside so we would encourage investors to pay attention now as the strong recovery story continues."