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On Thursday, Deutsche Bank (ETR:DBKGn) analysts adjusted their outlook on Softcat (LON:SCTS) Plc (SCT:LN), increasing the price target to GBP18.30 from the previous GBP17.00, while continuing to recommend a Hold on the shares. The revision follows Softcat’s latest trading update, which revealed significant year-on-year growth in key financial metrics.
Softcat, an IT infrastructure provider, reported robust double-digit growth in both gross profit and operating profit for the third quarter. This performance was attributed to the successful conversion of some larger solutions projects during the period. The company’s growth has been widespread across various technology areas and customer segments.
The update from Softcat also included an improved forecast for the full fiscal year. The company now anticipates low-teens growth in operating profit, an uptick from the low double-digit growth expected previously. This optimistic outlook is partly due to the impact of the larger deals that were finalized in the quarter.
The positive trading update from Softcat underscores the company’s ability to deliver strong financial results amidst a dynamic market. It also reflects the firm’s capacity to secure and execute significant projects that contribute to its profitability.
Deutsche Bank’s revised price target signifies a modest expectation of Softcat’s stock performance, suggesting that the analysts see potential for the shares to grow in value, albeit advising investors to maintain their current holdings without further accumulation at this stage.
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