Citi upgrades Softcat, downgrades Computacenter

Softcat

1,621.00p

15:45 15/11/24

-2.11%

-35.00p

Citi upgraded Softcat and downgraded Computacenter on Thursday as it refreshed its view on the European value-added resellers, "keeping in consideration a return to more normal growth for the space post pandemic induced spurt in demand".

Computacenter

2,206.00p

15:45 15/11/24

-0.99%

-22.00p

FTSE 250

20,508.75

15:45 15/11/24

n/a

FTSE 350

4,453.56

15:45 15/11/24

n/a

FTSE All-Share

4,411.85

15:45 15/11/24

n/a

Software & Computer Services

2,469.20

15:44 15/11/24

-0.65%

-16.26

"We believe that despite oft repeated risks (like disintermediation and pricing pressure), the space offers definite value with range of business models and presents a useful way to gain exposure to broader IT spending trend," the bank said.

Based on its analysis of fundamental positioning and valuations, it upgraded upgrading Softcat to ‘buy’ and downgraded Computacenter to ‘neutral’.

At 0820 BST, Softcat shares were up 4.8% at 1,454p, while Computacenter was down 1.2% at 2,166p.