The technology services group's US business grew operating profit by 88% last year, analysts note.
JP Morgan has reiterated its 'overweight' recommendation on Computacenter PLC (LSE:CCC), the FTSE 250 technology infrastructure group, arguing that a sharp share price fall following its full-year results represents an attractive entry point for investors.
Analyst Joseph George said concerns driving the sell-off were overdone, and that the market had misjudged the company's decision to increase capital expenditure in its fast-growing US business.
Computacenter's shares fell 4% on the day of its 2025 results, having dropped as much as 7% intraday, and are now 11% below their 52-week high.
George said the investment case remained compelling, describing Computacenter as a demonstrable winner from artificial intelligence infrastructure spending, with its US division growing operating profit 88% year-on-year on a constant currency basis through 2025.
The additional capital expenditure that alarmed investors amounts to less than 2% of the company's market capitalisation, JP Morgan noted, a sum the analyst said was justified by a roughly £5 billion order book and the margin-accretive growth available in a supply-constrained US market.
George acknowledged that expectations had been elevated heading into the results, after a recent pre-release update had already prompted analysts to raise forecasts, making the unexpected free cash flow reduction a harder pill for the market to swallow.
Free cash flow forecasts were cut alongside the results, though JP Morgan did not specify revised figures in its note.
With earnings expectations now at more achievable levels and the shares trading in line with their historical valuation average, George said the risk-reward had shifted back in investors' favour.