Gooch & Housego Price Target Raised – Analyst See’s Upside Of +20%

Gooch & Housego PLC (LON:GHH), a manufacturer of photonic components and systems listed on the LSE, has been given a vote of confidence in a recent analyst note.

The GHH share price has been on a steady climb this year, adding 20.97% as positive momentum grows, aided by a strong financial performance, strategic acquisitions, and bullish analyst sentiment.

Deutsche Bank's decision to raise its price target for Gooch & Housego shares from 625p to 740p, reflects a perceived upside of more than 20% from the current level. In reiterating its “buy” rating on the stock along with the upgrade in price, the firm clearly has confidence in the GHH's future prospects.

A key catalyst for recent positive sentiment is Gooch & Housego's strategic acquisition of U.S.-based Global Photonics for $17.5 million in May. This acquisition is poised to significantly enhance the company's capabilities in the lucrative aerospace and defense sectors, particularly within the U.S. market. The move is expected to be immediately earnings accretive and increasingly contribute to the bottom line in the coming years, solidifying the firm's position in the photonics industry.

The company's financial performance has also been a driving force behind its recent success. A 7.5% increase in revenue for the first half of 2025, with robust demand in the strategically important Aerospace & Defence and Life Sciences markets certainly helped. Interest in the sector continues to grow, particularly in light of recent spending commitments from European NATO members, and geopolitical tensions on the rise.

Despite the update, and an average price target of 710p, GHH has pulled back from the highs at 660p hit at the end of June, although 10% pullbacks to support (600p level), that are bought can be part and parcel of an upside move. If GHH is on your radar, keep a close eye on risk, this one has been moving at pace.