Market's view on Solid State
Published on April 2024
- The company is known for being conservative in its forecasts, often updating them later to show either a match or an increase in expected revenue.
- Despite a recent “ahead of expectations” update, one stock watcher decided to sell their shares citing a subdued outlook and a high P/E ratio in challenging markets.
- Some stock watchers believe the company’s shares are currently undervalued, as evidenced by a new coverage with a 1650p fair-value price target.
- The company’s performance in sectors like defence, IoT, and medical has been robust, contributing to revenue growth and strong demand for its products.
- WH Ireland has maintained a 1620p price target for the company, noting strong growth in its Systems division and expecting the company to continue outperforming conservative guidance.
- Recent half-year results showed a 39% increase in adjusted PBT and substantial EPS, suggesting that the company might exceed current year forecasts.
- Analysts are predicting strong organic revenue growth for the company and expect it to beat current consensus revenue and adjusted PBT expectations.
- There is anticipation of further growth in sales, with a target compound annual growth rate of 17% leading up to 2030.
- Some stock watchers are optimistic about potential new contracts and acquisitions that could push the stock price higher.
- The defence segment of the company is expected to continue thriving, providing a stable outlook for future trading statements.