Canaccord hikes target price for electric drive specialist Saietta Group

Analysts at Canaccord Genuity hiked their target price for shares of electric drive solution specialist Saietta Group on the basis of the " continued high level of interest in the electrification of transport" and in anticipation of license sales announcements.

They also hailed the accelerated growth of the business and the acquisition of core revenues streams via the strategic purchase of e-Traction.

Indeed, the company had delivered on several key strategic objectives, they said.

Those objectives included acquiring new technology, adding 34 staff specialised in electrified drive train solutions and launched a new product, Propel, its line of next-generation electric marine propulsion solutions.

It also noted that the group remained on track to ramp up UK-based production capacity, achieving 100,000 units per year by 2024 with a new and more efficient facility at Bicester.

The broker also noted that Saietta had yet to announce any license sales, which Canaccord expected would prove a key catalyst over the coming months.

The group announced roughly £800,000-worth of sales for the first half of 2022 for a gross profit of £437,000.

Canaccord raised its target price from 225.0p to 275.0p and reiterated its 'buy' recommendation for the shares.