Register to get unlimited Level 2

Barclays stays at 'overweight' on Softcat

By Alexander Bueso

Date: Wednesday 21 Oct 2020

Barclays stays at 'overweight' on Softcat

(Sharecast News) - Analysts at Barclays reiterated their 'overweight' recommendation and 1,260p target price for Softcat's shares, telling clients that the solid underpinnings of the business would drive a return to double-digits earings growth.
Soft demand from companies meant earnings growth had slowed down and was in turn weighing on the software specialist's ability to drive growth.

That posed a challenge particularly for Softcat, what with the company's shares already trading on 30 times' their estimated forward price-to-earnings multiple.

Nonetheless, its employees continued to be engaged and its clients satisfied, the broker said.

To back up that affirmation it pointed to its ranking - for a second year in a row - as the fifth best employer in the UK according to Glassdoor.

Investment continued to be substantial as well, with its headcount expected to increase by 10% over the full 2021 fiscal year.

"We remain confident that the business can return to double-digit earnings growth in a recovered market and that in the interim management has the balance sheet and profitability to continue investing in the business."







..

Email this article to a friend

or share it with one of these popular networks:


Top of Page