Somero Enterprises (SOM:AIM) 370p

Gain to date: 29.5%

Original entry point: Buy at 285.62p, 23 March 2017

Shares in concrete levelling specialist Somero Enterprises (SOM:AIM) have hit an all-time high after saying that 2017 revenue would beat market expectations and that it would benefit from a lower corporate tax rate in the US.

Also driving up the share price was a very positive outlook statement from the company which says it continues to see ‘significant growth opportunities’.

The new US corporate tax law should, in theory, leave businesses in that country with more money in their pocket after paying their taxes. That in turn could result in greater corporate spending and stimulate economic activity in the US, which is Somero’s largest market.

Stockbroker FinnCap has increased its earnings per share forecasts by 7.7% for both Somero’s 2017 and 2018 financial years, now standing at 29.5c and 36.8c respectively. Its share price target has been lifted from 420p to 450p, implying at least 20% upside over the next 12 months.

We’re encouraged to see an acceleration of growth in Europe during the second half of 2017 and that China is also seeing growth. The latter territory was disappointing in the first half of the year, prompting Somero to undertake a review to revive its fortunes in this part of Asia.

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