Liberum raises target price on Electrocomponents following 'outstanding' Q1
Analysts at Liberum raised their target price on industrial and electronics products distributor Electrocomponents from 1,170.0p to 1,270.0p on Friday, stating the group's first-quarter performance was "outstanding and well ahead of peers".
Electrocomponents delivered first-quarter like-for-like sales growth of 37% year-on-year, up 22% on a two-year view, materially ahead of Liberum's "low double-digit" year-on-year expectations.
While Electrocomponents has seen lower fulfilment rates and extended lead times from suppliers into its distribution centres, Liberum noted there has so far been only a minimal impact on availability.
Liberum highlighted that price was not even "a top five consideration" for why customers come to Electrocomponents but said availability was "number one", with Electrocomponents being known as "the fourth emergency service".
"We think that this will be key to Electrocomponents aim to continue to grow at rate that is at least twice that of the market," said Liberum, which also maintained its 'buy' rating on the stock.
"We continue to see Electrocomponents as a business with a high-quality management team and a disruptive, digital business model that is well positioned to keep taking market share."