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

Softcat (LON:SCT)‘s stock had its “buy” rating reissued by Berenberg Bank in a research note issued on Friday, Digital Look reports. They currently have a GBX 2,400 target price on the stock. Berenberg Bank’s target price points to a potential upside of 41.18% from the company’s current price.

SCT has been the topic of several other research reports. Jefferies Financial Group reiterated a “hold” rating and issued a GBX 1,700 target price on shares of Softcat in a research note on Wednesday. Deutsche Bank Aktiengesellschaft lowered shares of Softcat to a “hold” rating and increased their price target for the company from GBX 1,800 to GBX 2,140 in a research report on Wednesday, August 26th. Finally, JPMorgan Chase & Co. increased 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 report on Monday, September 7th. Four investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of GBX 1,993.75.

Softcat Stock Up 0.2%

LON:SCT traded up GBX 3 during trading hours on Friday, reaching GBX 1,700. The company’s stock had a trading volume of 1,339,130 shares, compared to its average volume of 1,776,860. The company has a market capitalization of £3.66 billion, a P/E ratio of 24.25, a price-to-earnings-growth ratio of 11.51 and a beta of 0.58. Softcat has a 12 month low of GBX 1,083 and a 12 month high of GBX 2,134. The company has a debt-to-equity ratio of 10.41, a quick ratio of 1.38 and a current ratio of 1.39. The stock has a 50 day moving average price of GBX 1,935.22 and a two-hundred day moving average price of GBX 1,742.66.

Softcat (LON:SCT) last announced 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%. Equities analysts predict that Softcat will post 60.72 EPS for the current fiscal year.

Insider Buying and Selling at Softcat

In other Softcat news, insider Robyn Perriss purchased 1,058 shares of the company’s stock in a transaction dated Friday, October 16th. The shares were acquired 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 business’s stock in a transaction dated Friday, October 16th. The shares were bought at an average price of GBX 1,890 per share, for a total transaction of £9,998.10. In the last three months, insiders have bought 12,816 shares of company stock valued at $24,246,219. Insiders own 2.91% of the company’s stock.

Trending Headlines about Softcat

Here are the key news stories impacting Softcat this week:

• Positive Sentiment: Seven Softcat insiders, including CEO Graeme Watt, collectively purchased 12,432 shares for approximately £234,965 at GBX 1,890 per share. The coordinated buying may signal management confidence in the company’s valuation and future prospects.
• Positive Sentiment: Berenberg reaffirmed its “buy” rating and maintained a GBX 2,400 price target, implying substantial upside from the recent trading level. Softcat stock information
• Neutral Sentiment: Softcat’s earnings call focused on growth, margins and artificial intelligence. The discussion supports the company’s long-term technology demand story, but investors remain focused on whether growth can be converted into sustained profitability. Softcat plc earnings call
• Neutral Sentiment: Jefferies reaffirmed its “hold” rating, indicating that some analysts see limited near-term catalysts despite the company’s solid operating position. Jefferies Softcat rating
• Negative Sentiment: Coverage warned that Softcat faces a margin squeeze in its upcoming fiscal-year results. Pressure on gross or operating margins could weigh on earnings expectations and help explain the stock’s weakness relative to its recent moving averages. Softcat faces FY results margin squeeze
• Negative Sentiment: Softcat admitted 12,432 new ordinary shares to trading following director subscriptions. Although the subscriptions indicate insider confidence, the increase in shares outstanding creates modest dilution for existing shareholders. Softcat new equity announcement

About Softcat

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.