March 14, 2019 / 6:49 AM / 2 months ago

BUZZ-Ultra Electronics: Berenberg upgrades to 'buy' on rising confidence

** Berenberg upgrades Ultra Electronics holdings to “buy” from “hold” ** Says is increasingly confident that Ultra can continue to achieve organic revenue growth over medium term, as well as healthy cash flow generation

** Says FY18 results were solid, with a return to organic revenue growth, a 10% increase in order book, and better-than-expected cash performance

** “Of more significance, in our view, is the business improvement strategy outlined by new CEO Simon Pryce to focus on core capabilities, streamline the portfolio, improve operations and invest for growth” - Berenberg

** However, brokerage cuts its earnings estimates by 10-11 pct, due to higher share count following termination of buyback programme, as well as higher investment and impact of accounting changes

** Berenberg raises price target to 1750p from 1500p, implies 14.1 pct upside from last closing price (Reporting by Adil Bhat)

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