Computacenter PLC (LSE:CCC) trading update was disappointing, said analysts, with the tailing off in trading pointing to an uncertain end to the year, especially with the fourth quarter the group’s most important period.
US bank Jefferies has trimmed its estimates by 5% and cut its share price target to 3,400p but adds that the comments were in line with updates recently from peers such as Bechtle and CDW.
“Importantly, we think it is likely that Computacenter will continue to gain market share.
"Meanwhile, the statement points to an expectation that the second of 2024 will be comfortably ahead of a year ago.
"This exit momentum growth, together with a growing base of podium customers, suggests that 2025 should be a better year.
Peel Hunt also noted that the downwardly revised guidance of £278 million for adjusted profits mirrors Bechtle's warning last week.
Like Jefferies, it too emphasises the long-term opportunity.
"Computacenter generates £200m annually in free cash flow and has an excellent track record of capital allocation.
"Its £300m investment in America now generates around £100m EBIT, a solid return. The company has demonstrated its commitment to returning excess cash to shareholders through a £200m buyback."
Buy with a 3,195p target is Peel Hunt's view.
Shares dipped 1.6% to 2,295p.