Softcat’s (SCT) “Buy” Rating Reiterated at Berenberg Bank

Berenberg Bank reissued their buy rating on shares of Softcat (LON:SCT) in a report released on Friday morning,Digital Look reports. Berenberg Bank currently has a GBX 2,400 target price on the stock.

A number of other brokerages have also commented on SCT. JPMorgan Chase & Co. boosted their price target on shares of Softcat from GBX 1,950 to GBX 2,300 and gave the company an “overweight” rating in a research note on Monday, September 7th. Jefferies Financial Group restated a “hold” rating and set a GBX 1,700 price objective on shares of Softcat in a report on Wednesday, October 14th. Finally, Deutsche Bank Aktiengesellschaft lowered shares of Softcat to a “hold” rating and raised their price objective for the company from GBX 1,800 to GBX 2,140 in a research note on Wednesday, August 26th. Four investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of GBX 2,078.57.

Softcat Trading Up 0.2%

LON SCT opened at GBX 1,700 on Friday. The company has a quick ratio of 1.38, a current ratio of 1.39 and a debt-to-equity ratio of 10.41. Softcat has a 52 week low of GBX 1,083 and a 52 week high of GBX 2,134. The business has a 50 day moving average price of GBX 1,929.51 and a 200-day moving average price of GBX 1,746.25. The company has a market cap of £3.66 billion, a price-to-earnings ratio of 24.25, a P/E/G ratio of 11.51 and a beta of 0.58.

Softcat (LON:SCT) last issued its earnings results on Wednesday, October 14th. The company reported GBX 75.80 earnings per share (EPS) for the quarter. Softcat had a return on equity of 46.24% and a net margin of 7.61%. As a group, equities analysts expect that Softcat will post 60.72 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Lynne Weedall acquired 1,058 shares of the firm’s stock in a transaction on Friday, October 16th. The stock was purchased at an average price of GBX 1,890 per share, for a total transaction of £19,996.20. Also, insider Graham Charlton acquired 529 shares of the firm’s stock in a transaction on Friday, October 16th. The stock was purchased at an average price of GBX 1,890 per share, with a total value of £9,998.10. Insiders purchased a total of 12,816 shares of company stock worth $24,246,219 in the last ninety days. 2.91% of the stock is owned by corporate insiders.

Key Softcat News

Here are the key news stories impacting Softcat this week:

• Positive Sentiment: Seven Softcat insiders, including senior directors, collectively bought 12,432 shares at GBX 1,890 each, investing approximately £225,000. The coordinated purchases may signal confidence in the company’s valuation and prospects.
• Positive Sentiment: Berenberg reaffirmed its “Buy” rating and set a GBX 2,400 price target, implying substantial upside from recent trading levels. The recommendation reinforces the case that the recent share-price weakness may have been overdone.
• Positive Sentiment: Recent analysis continues to highlight potential long-term growth in the IT-reseller sector, supported by demand for artificial intelligence and technology services. Softcat stock analysis
• Neutral Sentiment: Softcat issued 12,432 new ordinary shares following director subscriptions, lifting the share count to about 215.7 million. The transactions demonstrate director participation but create a small amount of dilution for existing shareholders. Softcat director equity subscription
• Neutral Sentiment: Jefferies reaffirmed its “Hold” rating, providing a more cautious counterpoint to Berenberg’s bullish stance. Softcat Hold rating
• Negative Sentiment: Investors are focused on the risk of a margin squeeze in the upcoming fiscal-year results. Pressure on profitability could offset otherwise solid revenue growth and weigh on earnings expectations. Softcat faces FY results margin squeeze

Softcat Company Profile

Softcat plc operates as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom. The company advices, procures, designs, implements, and manages technology, such as software licensing, workplace technology, networking, security, and cloud and datacenter for businesses and public sector organizations. It also offers public cloud, collaboration, connectivity, data centre and private cloud, devices, and financial solution services. In addition, the company provides IT asset management, lifecycle solutions, modern management, security, software licensing, supply chain operation, and virtual desktop and application.