DiscoverIE Group PLC (LON:DSCV) has been tipped to increase in value by some 80% in the coming years as it benefits from the rising uptake of electrification in industrial applications.

Stockbroker Shore Capital has today begun its coverage of the London-listed designer and manufacturer of customised electronic components.

“We initiate coverage with a ‘buy’ recommendation and believe that the shares have the potential to reach 1,250p within four years if the company achieves its FY2025 targets,” analyst Tom Fraine said in a note.

“We believe that the company is well placed to benefit from the long-term trend of increased electrification in industrial applications.

“This has been driven by a rise in automation, which we believe may be accelerated by COVID-19, given the sharp fall in employment in the global manufacturing sector.”

Fraine added: “The group has been growing its exposure to attractive end markets with 68% of group sales in FY2020A driven by the renewable energy, transportation, industrial & connectivity and medical markets.

“The company has consistently achieved double-digit underlying EPS growth, strong cash generation and margin expansion, which we expect to improve further, and has strong ESG credentials.”

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