The £500mln company, which puts companies’ logos on everything from pens to bags to mugs, said today that full-year sales and profits would be towards the “upper end” of current market forecasts.
4imprint upped its marketing spend at the beginning of the year to help build brand awareness and said over summer that early results had “exceeded expectations”.
The marketing drive has “clearly proved a success” said Peel Hunt, with the momentum built up in the first half of the year continuing into the second.
The surge in first-half orders as a result of the ads did pose some problems though, putting pressures on the supply chain which dented margins, although analysts reckon those issues are now behind it.
“Despite strong revenue growth in H1 and today’s confirmation of trading momentum, the stock is currently trading at the lower end of its five-year valuation range,” Peel Hunt added.
As a result, the brokerage has upgraded the stock to ‘buy’ from ‘add’ and hiked its price target to 2,400p (from 2,050p).
Shares jumped 16.6% to 2,110p in mid-morning trade on Thursday.