Softcat's (SCT) "Buy" Rating Reiterated at Berenberg Bank

Key Points

• Berenberg Bank reiterated its “Buy” rating on Softcat and set a GBX 2,400 price target, implying 38.41% upside from the previous close.
• Analyst sentiment is mixed: four analysts rate Softcat a Buy, three a Hold and one a Sell, producing a consensus “Hold” rating and average target of GBX 1,993.75.
• Softcat recently reported GBX 75.80 quarterly EPS, while strong fiscal 2026 growth and dividend increases were tempered by guidance suggesting slower growth in fiscal 2027.

Softcat (LON:SCT - Get Free Report)'s stock had its "buy" rating reissued by Berenberg Bank in a report released on Friday, Digital Look reports. They presently have a GBX 2,400 price objective on the stock. Berenberg Bank's target price would indicate a potential upside of 38.41% from the company's previous close.

Other research analysts have also recently issued research reports about the stock. Jefferies Financial Group reaffirmed a "hold" rating and issued a GBX 1,700 price objective on shares of Softcat in a report on Wednesday. Deutsche Bank Aktiengesellschaft lowered shares of Softcat to a "hold" rating and increased their target price for the stock from GBX 1,800 to GBX 2,140 in a research note on Wednesday, August 26th. Finally, JPMorgan Chase & Co. raised their target price on 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 analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of GBX 1,993.75.

Softcat Price Performance

LON:SCT opened at GBX 1,734 on Friday. The company has a debt-to-equity ratio of 10.41, a current ratio of 1.39 and a quick ratio of 1.38. The company has a 50 day moving average price of GBX 1,935.22 and a 200-day moving average price of GBX 1,742.66. Softcat has a 1-year low of GBX 1,083 and a 1-year high of GBX 2,134. The firm has a market cap of £3.73 billion, a price-to-earnings ratio of 24.74, a price-to-earnings-growth ratio of 11.51 and a beta of 0.58.

Softcat (LON:SCT - Get Free Report) last announced its quarterly earnings results on Wednesday, October 14th. The company reported GBX 75.80 earnings per share (EPS) for the quarter. Softcat had a net margin of 7.61% and a return on equity of 46.24%. Equities research analysts forecast that Softcat will post 60.72 EPS for the current year.

Insider Buying and Selling

In other Softcat news, insider Graham Charlton bought 176 shares of the firm's stock in a transaction dated Monday, September 7th. The shares were purchased at an average price of GBX 2,045 per share, for a total transaction of £3,599.20. Also, insider Kathryn Mecklenburgh bought 176 shares of the firm's stock in a transaction dated Monday, September 7th. The shares were acquired at an average price of GBX 2,045 per share, for a total transaction of £3,599.20. Insiders bought 384 shares of company stock valued at $749,739 over the last 90 days. Company insiders own 2.91% of the company's stock.

Softcat News Roundup

Here are the key news stories impacting Softcat this week:

• Positive Sentiment: Softcat reported a strong fiscal 2026, with revenue rising 35.4% and profit increasing 19.4%. The company also raised its dividend, supporting the investment case and indicating confidence in cash generation. Softcat FY2026 profits rise 19.4% as revenue grows 35.4%
• Positive Sentiment: The company is expanding in the United States through its deal with GDT, potentially broadening its addressable market and creating an additional long-term growth opportunity. Softcat posts double-digit profit growth and moves into U.S. market with GDT deal
• Positive Sentiment: Directors agreed to subscribe for 12,432 new ordinary shares. Although the issue is small, insider participation can signal management alignment with shareholders. Softcat Directors Subscribe to New Equity
• Neutral Sentiment: Jefferies reaffirmed its “hold” rating and set a GBX 1,700 target, suggesting limited near-term upside at the prevailing valuation.
• Positive Sentiment: One stock analysis estimates approximately 25% potential upside, based on Softcat’s position in the IT-reseller sector and its growth prospects. Softcat Stock Analysis and Potential Upside
• Negative Sentiment: Management’s fiscal 2027 guidance implies a deceleration from the exceptionally strong fiscal 2026 performance. That slower-growth outlook overshadowed the earnings beat and dividend increase, driving the negative share-price reaction. Softcat shares fall as outlook points to slower growth
• Negative Sentiment: The new share issuance increases the share count to approximately 215.7 million, creating modest dilution for existing investors, although the number of shares issued is small.

Softcat Company Profile

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.

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