Deutsche Bank raised its price target on discoverIE Group (LSE:DSCV) to 940p from 910p, keeping a Buy rating on the specialist electronics manufacturer after a sharp acceleration in orders and revenue during the first quarter of the financial year to March 2027.
Analyst James Beard said organic revenue growth accelerated to 6% in the quarter, up from 5% in the previous quarter and comfortably ahead of his prior full-year forecast of 3%, with reported revenue growth reaching 10%.
The standout figure, for Beard, is organic order growth of 31%, up from 15% in the fourth quarter, giving a book-to-bill ratio of 1.15 times; Beard tracked the progression through the year, from a 4% decline in the first quarter of the prior year through 8% and 4% growth in the following two quarters, and said he does not view the earlier weak comparison as the driver of the latest jump.
The broker flagged that recent acquisitions are performing well, with regulatory approval for the 3Gmetalworx deal progressing and completion still expected in the first half of the new financial year.
