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Numis has a “hold” rating and a target of 640p ahead of the equipment rental firm’s first-quarter results on Wednesday. The broker is expecting “very strong” figures, with revenues up 17 per cent, but sees no reason to chase the shares as it believes growth will cool off in the second half of the year.
UBS has raised its rating from “neutral” to “buy” and hiked its target from 270p to 295p. The broker views Electrocomponents as a better play on the sector than rival Premier Farnell due to more stable margins, but sees both as having potential for solid cash conversion and returns.