Computacenter PLC (LSE:CCC) offers a buying opportunity after a share price pullback defied earnings upgrades, according to JP Morgan, which sees scope for further forecast increases.
In morning trading, the shares stood at 5,050p, down 3%, while the broker maintained its 'overweight' rating.
The earlier results-day sell-off wiped 8% off the shares despite higher guidance for the 2026 financial year and mid-teens percentage earnings upgrades based on JP Morgan’s estimates.
Following an investor call with chief executive Mike Norris and chief financial officer Keith Mortimer, analyst Joseph George grew more positive about the investment case.
Supporting the raised guidance is an order book exceeding £9 billion, with the bank expecting roughly two-thirds to convert into revenue during the 2026 financial year.
Alongside those existing orders, George expects Computacenter to generate further new business from both hyperscale and enterprise customers, supporting his expectations for additional earnings upside.
Despite the pullback, the shares command a premium valuation of around 20 times JP Morgan’s forecast earnings for the 2027 financial year.
Even at this multiple, the broker expects earnings growth and scope to beat consensus forecasts, driving outperformance and retaining Computacenter as its top value-added reseller pick in the subsector.
With the fourth quarter representing Computacenter’s seasonally largest trading period, the bank expects existing orders and further new business to support raised guidance and further earnings upside.
