Broker snap: Higher sales prompt upgrades at TT

16th May 2011 11:05

Charles Stanley scales up its forecasts at sensor and electronic component technology firm TT Electronics after the board announced that progress in 2011 will be significantly ahead of previous expectations.Trading during the first four months has been strong, with revenues 16% ahead of 2010. "Higher sales volumes have provided better overhead recovery and management are ahead of their expectations for both sales growth and progress towards a group margin target of 8%-10%," said analyst Richard Hickinbotham.Charles Stanley raises pre-tax profit forecasts for 2011, 2012 and 2013, by 13%, 10% and 8%, respectively, to reflect better sales and margins. However, the broker notes that the group will face tougher sales comparatives as the year progresses.A 'buy' recommendation is unchanged.---BC