(Sharecast News) - Analysts at Berenberg lifted their target price on software firm Craneware from 2,300.0p to 2,600.0p on Monday, noting that strong momentum had seemingly continued throughout the first half of its trading year.

Berenberg said Craneware's interim results were in line with the company's trading update in January, with the board remaining confident about the accelerating growth momentum and a return to double-digit growth in the near term.

"We think now is the time to gain exposure to this high-quality software business with highly attractive end-market dynamics. We anticipate that Craneware will be able to achieve this growth due to 1) the improving end-market dynamics, 2) the strong value proposition of the cloud-based Trisus platform and 3) the opportunity from integrating third-party solutions," said the German bank.

Berenberg, which reiterated its 'buy' rating on the stock, also highlighted that these third-party applications drove 'other' revenue to $5.6m in the first half, up from $1.1m in FY23.

"Craneware trades on 29.5x FY24 P/E and 25.7x FY25 P/E, and we forecast it to deliver an 11.5% EPS CAGR in FY23-26," added Berenberg.

Reporting by Iain Gilbert at Sharecast.com