Ultra Electronics is in a replenishment phase, investing in new technologies to embed in programmes that should return the company to growth from FY17. In the current year the spending environment remains flat, but FX and M&A contributions will bolster performance, enabling the company to deliver EPS in excess of 2011’s record level. Our fair value of 2,037p indicates decent upside for the shares should improved order intake and continuing investment deliver expected growth.


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Decoding the messages
- Published:
13 Sep 2016 -
Author:
Andy Chambers -
Pages:
14 -
Ultra Electronics is in a replenishment phase, investing in new technologies to embed in programmes that should return the company to growth from FY17. In the current year the spending environment remains flat, but FX and M&A contributions will bolster performance, enabling the company to deliver EPS in excess of 2011’s record level. Our fair value of 2,037p indicates decent upside for the shares should improved order intake and continuing investment deliver expected growth.