Berenberg downgrades Bytes Technology Group stock on weak growth outlook

Published 03/07/2025, 10:26
Berenberg downgrades Bytes Technology Group stock on weak growth outlook

Investing.com - Bytes Technology Group PLC (LON:BYIT) stock rating was downgraded from Buy to Hold by Berenberg on Tuesday, with its price target slashed to GBP3.90 from GBP6.60.

The downgrade follows Bytes Technology Group’s Annual General Meeting statement on Tuesday, where the company guided for first-half 2026 growth in both gross profit and operating profit to be "well below market expectations."

Bytes attributed the slowdown to macroeconomic weakness, disruption from its evolving sales model, and timing impacts from Microsoft (NASDAQ:MSFT)’s changes to its partner incentives. This guidance comes after what the company described as a strong second half of 2025.

Berenberg believes the disruption is unlikely to be limited to the first half of 2026, noting that the guidance also implies a reduction in hiring at the technology solutions provider.

The research firm has reduced its fiscal year 2026 and 2027 estimates for reported earnings per share by 11% and 15% respectively, citing these ongoing challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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