Electrocomponents Share Discussion Threads

[philanderer] 04/6/2020 10:28

JP Morgan downgrading to 'neutral' tp 746p cut from 811p

[philanderer] 03/6/2020 12:54

Shore Capital: cyclical risk at Electrocomponents


Cyclical risk means the valuation of Electrocomponents (ECM) cannot be justified, says Shore Capital.

Analyst Robin Speakman retained his ‘sell’ recommendation on the shares, which rose 4.7% to 668p yesterday.

He said the full-year results to the end of March were ‘pleasing and robust’ but noted ‘toughening conditions as the year progressed before the onset of the Covid-19 crisis which only touched the group at the very end of the year’.

‘The current year is set to see a significantly greater challenge, with Covid-19 impacting the first quarter period significantly before the onset of a likely more pronounced cyclical “hangover” on gross domestic product… globally for a period,’ said Speakman.

[philanderer] 03/6/2020 11:36

RBC RAISES ELECTROCOMPONENTS PRICE TARGET TO 660 (500) PENCE - 'SECTOR PERFORM'

UBS RAISES ELECTROCOMPONENTS PRICE TARGET TO 750 (610) PENCE - 'BUY'

[philanderer] 02/6/2020 08:33

"...Electrocomponents said it delivered a strong performance in its recently-ended financial year, with both sales and profit up, though demand has been hit in recent weeks by Covid-19."

Dividend deferred.

2nd june Liberum buy tp 750p
2nd june Peel Hunt add tp 700p up from 550p
2nd june Shore Cap sell -

[philanderer] 26/5/2020 10:12

HSBC RAISES ELECTROCOMPONENTS PRICE TARGET TO 625 (480) PENCE - 'HOLD'

[philanderer] 29/4/2020 00:01

28th april UBS 'buy' ... tp 610p cut from 775p

[krutt] 06/3/2020 16:28

I see a director bought 10k at £6.11

[krutt] 03/3/2020 16:03

Was hoping these would go below £6 before i got in but it looks like its turned the corner now. I will watch closely as i think this is an excellent company with good growth prospects.

[philanderer] 19/2/2020 09:15

19th feb Peel Hunt hold tp 700p up from 650p

[philanderer] 17/2/2020 13:43

HSBC likes Electrocomponents. “From defying the ‘slope of doom’, to riding the ‘ramp of recovery’,” it says, which is heady stuff for a fuse distributor.

Usually profit warnings for distributors roll down a slope starting with the highest inventory turn distributors, and in the end hitting the slowest. Electros has done a good job of defying the weakness in the leading indicators and grown faster than its peers driven by selfhelp and solid execution. Yes, there were estimate cuts but less than some feared. Markets have rewarded Electros for its perceived resilience against the ‘slope of doom’.

During recovery, the slope of doom can also be reconstructed as the ‘ramp of recovery.’ If distributors sitting at the top of the supply chain appear to bottom out, we should expect a coming recovery in Electros. While it’s still early to call a recovery, the leading indicators are starting to turn with strong growth in semiconductor equipment billings and a sequential improvement in SIA shipments. Historically, the right time to buy slow inventory turn distributors is once the billings start to improve whilst inventory levels are still at low levels. Customer inventory is back at historic levels and order books for distributors are stabilising.

Typically, customers continue to run down inventory levels until they see further clarity. However, once the orders start coming in, inventory re-stocking results in pent-up demand. During this period markets are usually prepared to look through the historic lag of high-service distributors and value them at depressed earnings on recovery multiples.

If ECM can continue to deliver top-line growth and operational efficiencies, we think the markets may be convinced that the transformation of the business has been structural driving a re-rating and winning back its status as a defensive compounder. Our current FY23e EPS estimate is 45.0p, we outline how this could rise to 53.4p including acquisitions.

[philanderer] 11/2/2020 09:47

++ BERENBERG RAISES ELECTROCOMPONENTS PRICE TARGET TO 800 (715) PENCE - 'BUY' ++

[jgunnsm2] 10/2/2020 13:12

10% of ECM revenues come from Asia with their centre of excellence in Foshan (845 km from Wuhan). Given that their Asian regional centre only just made profit the coronavirus will not be helpful to profit in the region.

[philanderer] 05/2/2020 14:05

+++ JPMORGAN RAISES ELECTROCOMPONENTS TARGET TO 811 (774) PENCE - 'OVERWEIGHT' +++

[philanderer] 05/2/2020 08:58

Electrocomponents on track for gains, says Numis


Electronic parts distributor Electrocomponents (ECM) will have to deal with a softer market but Numis says it still has the potential for share gains.

Analyst David Brockton retained his ‘buy’ recommendation and target price of 910p on the shares, which rose 6.2% to 713p yesterday.

The group reported slightly lower like-for-like growth of 2% in the four months to January, but Brockton said ‘we would expect the market to largely look through softer short-term conditions and confirmation of the return of chief executive Lindsley Ruth should be positively received’.

He said trading was ‘volatile’ but January was ‘encouragingly above average’.

‘We believe Electrocomponents still offers significant potential to deliver share gains and improve margins,’ said Brockton.

[philanderer] 04/2/2020 18:13

One of each ;-)

4th feb Liberum buy tp 810p
4th feb Peel Hunt hold -
4th feb Shore Cap sell -

[philanderer] 04/2/2020 10:09

Forgot all about the trading statement and good news too re Chief Executive Lindsley Ruth :-)

[philanderer] 16/1/2020 09:36

...Electrocomponents was boosted by an upgrade to ‘overweight217; at JPMorgan. (tp 774p)

ADVFN

[philanderer] 08/1/2020 12:07

8th jan UBS 'buy' tp 775p up from 725p

[philanderer] 08/12/2019 23:56

'Beijing orders state offices to replace foreign PCs and software'

New directive aims to boost domestic tech supply chain

[philanderer] 29/11/2019 10:52

Growth potential at Electrocomponents, says Jefferies


Electronic parts distributor Electrocomponents (ECM) has a ‘long runway to growth’ if it can steal market share, according to Jefferies.

Analyst Kean Marden retained his ‘buy’ recommendation and target price of 730p on the shares, which fell 1.4% to 659.6p yesterday.

He said the outlook for the group was ‘sunny’, describing it as ‘small but rapidly growing, sticky customer relationships, and sometimes high margin’.

‘We believe the main prize remains market share gains from existing and adjacent distribution markets - these have a long runway for growth,’ said Marden.