Investec reiterates 'buy' rating on Ultra Electronics as it restructures

24th Jun 2015 13:04

Investec has kept a 'buy' rating on defence group Ultra Electronics and kept its price target at 2060p. Ultra outlined further details of its group-wide initiative to standardise systems together on Monday.Investec said the new plan would help the firm evolve and expected the plan to help drive a recovery in top-line and profit growth."We expect the new arrangement to help Ultra drive revenue growth as well as reducing cost and complexity," Investec said in a note.The brokerage said Ultra was trading in line with expectations and had been impacted by uncertainty on US defence spending.However, Investec pointed out that recent acquisitions were going well.Shares in Ultra were trading at up 0.05% at 1863p on Wednesday at 13.21.