Next Fifteen Communications Group PLC (LON:NFC) has been upgraded to ‘buy’ from ‘add’ by analysts at Peel Hunt, who said the tone of the company’s commentary in a Thursday trading update was better than they had expected.

In a note in which it also retained its 500p price target on the communications firm, Peel Hunt added that new business wins and cash flow suggested “end market resilience that might not have been looked for in April”.

READ: Next Fifteen Communications resilient in first half with “modest growth” in revenue and profit predicted

“Whilst the company is not signalling a change to forecasts, the tone of the commentary suggests that trading conditions are certainly not worse than anticipated in April – indeed if cash is a guide they are better”, the broker said, although they cautioned that there was a “fundamental macro risk” that could derail the company’s second half.

“We leave forecasts and [target price] unchanged, but in the face of the better tone and with 30% upside we raise our recommendation from Add to Buy”, Peel Hunt concluded.

The upgrade followed a trading update where the firm said it expected to deliver “modest growth” in both revenues and profitability in the first half of its financial year.

Next Fifteen shares were 4.7% higher at 387.6p in late-afternoon trading.