German construction sector still in recession, civil engineering only bright spot
Investing.com - Stifel initiated coverage on Concurrent Technologies (CNC:LN) with a Buy rating and a price target of GBP2.20.
The research firm’s analysis includes a discounted cash flow model supporting approximately 245 pence per share, using an 8.6% weighted average cost of capital and 3% growth rate.
Stifel noted that UK hardware and electronics peers trade at approximately 27 times adjusted FY25 price-to-earnings ratio, which would imply about 205 pence per share for Concurrent Technologies .
The GBP2.20 price target represents approximately 28 times FY25 multiple carried forward to FY26 earnings per share, according to Stifel’s analysis.
This valuation equates to roughly a 20% premium compared to peers, which Stifel considers reasonable given Concurrent’s "superior growth and margin profile," with potential for further upside if design-ins and systems ramp faster than their conservative base case.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.