XP Power Ltd. (DI) (XPP)

Up
Share Price:
1,836.00p
Market Cap:
£514.67m
Change Today:
94.00p
Sector:
Electronic and Electrical Equipment

Berenberg hikes target price on XP Power

By Iain Gilbert

Date: Friday 17 Nov 2023

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg raised their target price on power supply solutions provider XP Power from 1,400.0p to 1,600.0p on Friday after having upgraded the group to 'buy' last month.
Berenberg said that after upgrading the stock following its 2 October profit warning and an expected equity raise, it was now out the other side of the event, with the company having raised roughly £45.0m earlier in November. While not quite the form or size of the approximately £80.0m rights issue it had anticipated, Berenberg noted XP's shares were still up by roughly 25% since 25 October.

"Now, the balance sheet has been repaired and the valuation continues to be attractive when we consider self-help measures and our view of XPP's status as a long-term winner," said Berenberg.

While shorter-term markets remain challenged, Berenberg thinks the stock's risk/reward scenario has become "comfortably skewed" to the upside for investors.

"XPP trades on 12.8x FY24 P/E and 10.1x FY25 P/E. Previously, we have commented on potential pressures on FY24 trading given uncertainty around the semiconductor cycle, but new clarity on self-help measures offers further downside protection on our already trough-margin forecasts," said the analysts.

"We would also note, although no detail was given, XPP announced it received several takeover approaches during October. If we were to assign the average UK takeout premium year-to-date of circa 49% to the £10 price the shares settled at pre-raise, this would imply comfortable upside to the shares from here as well."





Reporting by Iain Gilbert at Sharecast.com

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

XPP Market Data

Currency UK Pounds
Price 1,836.00p
Change Today 94.00p
52 Week High 2,010.00p
52 Week Low 857.00p
Volume 9,277
Shares Issued 28.03m
Market Cap £514.67m

Performance Indicators

Compare performance with the sector and the market.

Key
Vs Market
Vs Sector
Value
market
  1. full market star
  2. full market star
  3. full market star
  4. half market star
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. half sector star
  4. empty sector
  5. empty sector
Price Trend
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. empty market
sector
  1. half sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
Income
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. half market star
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. empty sector
  5. empty sector
Growth
market
  1. full market star
  2. full market star
  3. half market star
  4. empty market
  5. empty market
sector
  1. empty sector
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
Price Chg 6m
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. half market star
sector
  1. full sector star
  2. half sector star
  3. empty sector
  4. empty sector
  5. empty sector
P/E
market
  1. full market star
  2. full market star
  3. full market star
  4. empty market
  5. empty market
sector
  1. full sector star
  2. half sector star
  3. empty sector
  4. empty sector
  5. empty sector
PEG
market
  1. half market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. half sector star
Dividend Yield
Not Available
EPS Growth
market
  1. full market star
  2. half market star
  3. empty market
  4. empty market
  5. empty market
sector
  1. half sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
Operating Margin
market
  1. full market star
  2. full market star
  3. full market star
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. half sector star
  4. empty sector
  5. empty sector