Berenberg reiterates 'buy' rating on XP Power following 'impressive' Q1 update

Analysts at Berenberg reiterated their 'buy' rating and 5,945.0p target price on XP Power after the firm posted an "impressive" set of first-quarter results against some "tough" comparatives.

Berenberg stated that XP Power had issued a solid first-quarter trading update on Tuesday, with constant currency order intake increasing 7% year-on-year, ongoing strength in semiconductors and a recovery in industrial technology that more than offset a clearly signposted reversal in healthcare orders.

The German bank also pointed out that XP Power saw revenue increase 23% year-on-year on a constant currency basis, with book-to-bill of 1.29 times.

Berenberg said following an "impressive" 2020, it was "encouraging" to see the momentum continue into 2021, and while guidance for the full year remained unchanged, the analysts view this as "a positive start to the year".

"Shares have lagged the sector year-to-date despite the continued positive semiconductor commentary, which we feel is unwarranted," concluded Berenberg.