Berenberg hikes target price on XP Power

Analysts at Berenberg hiked their target price on power supply manufacturer XP Power from 4,980.0p to 5,230.0p on Tuesday, stating its upgrade cycle was continuing.

Electronic & Electrical Equipment

9,460.79

17:14 01/11/24

0.64%

60.43

Berenberg made the adjustments to its assumptions on XP Power after the group issued a "positive" third-quarter trading update on Monday, with 32% year-on-year organic revenue growth and a 2% improvement to order intake.

The German bank also said XP's cash performance "continued to impress", proving that its supply chain was working well, as net debt reduced to £28.2m from £34.4m despite strong top-line growth.

"Overall, we continue to regard XPP as a top pick in the UK industrials sector due to positive earnings momentum, strong medium-term growth prospects, and quality characteristics, which we believe continue to be overlooked by the market," said Berenberg, which also increase its full-year 2020 earnings per share estimates by 9% and reiterated its 'buy' rating on the stock.