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

Softcat (LON:SCT)‘s stock had its “buy” rating reaffirmed by equities researchers at Berenberg Bank in a report issued on Friday, Digital Look reports. They currently have a GBX 2,400 price target on the stock. Berenberg Bank’s target price would suggest a potential upside of 41.18% from the stock’s current price.

SCT has been the subject of a number of other reports. JPMorgan Chase & Co. lifted their price objective on shares of Softcat from GBX 1,950 to GBX 2,300 and gave the company an “overweight” rating in a report on Monday, September 7th. Deutsche Bank Aktiengesellschaft downgraded shares of Softcat to a “hold” rating and boosted their target price for the stock from GBX 1,800 to GBX 2,140 in a research report on Wednesday, August 26th. Finally, Jefferies Financial Group restated a “hold” rating and issued a GBX 1,700 target price on shares of Softcat in a report on Wednesday. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of GBX 1,993.75.

Softcat Stock Up 0.2%

LON SCT traded up GBX 3 on Friday, hitting GBX 1,700. 1,339,130 shares of the company were exchanged, compared to its average volume of 1,776,860. The company has a current ratio of 1.39, a quick ratio of 1.38 and a debt-to-equity ratio of 10.41. The company has a market cap of £3.66 billion, a PE ratio of 24.25, a PEG ratio of 11.51 and a beta of 0.58. The stock has a fifty day moving average of GBX 1,935.22 and a 200-day moving average of GBX 1,742.66. Softcat has a 12 month low of GBX 1,083 and a 12 month high of GBX 2,134.

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

Insider Buying and Selling at Softcat

In other news, insider Graeme Watt bought 5,291 shares of the company’s stock in a transaction on Friday, October 16th. The shares were purchased at an average price of GBX 1,890 per share, with a total value of £99,999.90. Also, insider Lynne Weedall bought 1,058 shares of Softcat stock in a transaction dated Friday, October 16th. The stock was acquired at an average cost of GBX 1,890 per share, with a total value of £19,996.20. Insiders bought 12,816 shares of company stock valued at $24,246,219 in the last quarter. 2.91% of the stock is owned by company insiders.

Softcat News Summary

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.