Shares in online musical instrument seller Gear4music (G4M: AIM) are up nearly 40% year to date to 620.5p.
The firm sells own-brand instruments and third-party brands such as Yamaha.
Investors are optimistic about its growth prospects. It recently focused on international expansion into Sweden and Germany.
OVERSEAS SALES SURGE
International sales soared 124% from £9.5m to £21.3m in the year to 28 February 2017.
Over the same period, it has also more than doubled its underlying operating profit to approximately £2.6m, up from £895,000.
We flagged Gear4music as one to watch in March as CEO Andrew Wass expressed confidence on delivering full year profits ahead of its upgraded expectations in January.
BROKERS UPBEAT
Broker Shore Capital analyst George Mensah is upbeat about the company’s prospects, noting infrastructure investment has left it well placed to accelerate growth in its European markets.
He also highlights how quickly Gear4music is expanding overseas. International sales now represent 38% of group revenue, a significant increase on 16.5% in 2014.
Panmure Gordon analyst Peter Smedley recommends the stock ‘buy’ as the business is well placed to deliver on it current growth projections over the next one to two years.
