Panmure says Focusrite should 'get lucky' on Daft Punk effect

Panmure's price target for the AIM-listed company, whose ticker code is TUNE, was held at 217p, which offers more than 40% upside on Monday's closing price.

Focusrite, which supplies hardware and software products used by professional and amateur musicians around the world, is well positioned in the electronic dance music (EDM) market, which has recently been the fastest-growing segment of the music industry, with Novation has been Focusrite’s fastest growing division.

Novation is an electronic instrument manufacturer, with the brand focused on allowing customers to make electronic music using synthesisers and computer-enabled technology.

Although he issued a disclaimer that "I wear a cardigan", O'Connor walked though the rise and rise of Daft Punk based on their fusion of "elements of house music with funk, techno, disco, rock, and synthpop", climaxing with their 2013 huge global hit 'Get Lucky'.

Also citing the 1977 collaboration on ‘I Feel Love’ between producer Giorgio Moroder and Donna Summer, and namechecking the Chemical Brothers, David Guetta and Calvin Harris, O'Connor said the BBC documentary noted that tools for EDM production include a computer, MIDI keyboard and mixer/sound recorder, with technology having heralded a “democratisation of music” via the bedroom music studio, and that it accelerated the process of “making music easy to make” both of which are mantras of Focusrite.

Last year Novation grew sales 22.7% to £14.2m but, said O'Connor, getting down to business, Focusrite's current share price "does not reflect the opportunity: Focusrite offers a unique investment proposition".

He noted that the shares have weakened in the general market pullback and the Daft Punk documentary was a reminder that now was a good time to revisit the investment case, given the current attractive discount to the global peer group, that is a price/earnings ratio of 18.6 times versus the sector's 12.8.