Bechtle 'best in class' performer, Berenberg rises to 'buy'

Bechtle AG

22/02/2024 09:29

** Berenberg ups the German IT-systems provider Bechtle
 BC8G.DE  to "buy" from "hold," pointing to steadily increasing
business model, making it the "best in class" performer 
    ** The broker notes the company has been able to outgrow the
market over the past 10 years and the trend is projected to stay
    ** The brokerage forecasts annual sales growth of about 9%
until 2026 with "a stronger-than-expected rebound in IT hardware
investments in H2 of this year"
    ** Berenberg notes the company offers "superior
profitability" with an average EBIT margin of 6.1% from 2023-26,
compared to peers at 5.2%
    ** The company has been steadily increasing revenues from
expanding international businesses from 35% in 2020, to 38% in
2022
    ** Berenberg views Bechtle as "a well-oiled machine, which
has continued to deliver even in an adverse macro environment"
    ** The stock is among top performers on  .TECDAX  index
    ** Out of 17 analysts that cover Bechtle, 12 rate the stock
"strong buy" or "buy" and three rate it "hold" and two rate it
"sell" - LSEG data

 (Reporting by Amir Orusov)
 ((Amir.orusov@thomsonreuters.com))