Canaccord raises target price on Tyman

Canaccord said it now had "increased confidence" that Tyman would enjoy "continued good trading momentum" into the end of the year, leading it to tweak profit estimates higher despite also factoring in "a modestly stronger sterling" and a negative currency translation impact.

The Canadian bank stated that given "the robust underlying demand", Tyman's current issue was more likely to be dealing with and managing industry-wide supply constraints rather than concerns about the top line holding up.

"With a generally supportive supply-demand dynamic being seen in key markets currently, we suspect that discussions will be supportive to recover any cost inflation in 2021," said Canaccord, which also reiterated its 'buy' rating on the stock.

Canaccord also highlighted that with key uncertainties like the US election, the UK's second lockdown closing down the industry and the strength of momentum going into the fourth quarter now receding, it had "greater confidence" in its estimates and valuation, albeit while continuing to acknowledge macro risks associated with the Covid-19 pandemic.