UBS ups Bechtle to 'buy' on German rebound

Bechtle AG

14/05/2025 11:08

** UBS upgrades German IT service provider Bechtle BC8G.DE to "buy" from "neutral" as stabilisation in both the German government and economy is likely to catalyze IT spend

** The broker believes that a "challenging period" for the company draws to a close in Q1 and that will be a reverse from the drag in operations in 2023 and 2024 by German recession

** "Given the return to growth to its historical average we don't think the market is pricing in this opportunity fully", the broker says

** It adds Germany's 500 billion euros infrastructure fund is set to be a sizable tailwind for Bechtle which generated c.60% of FY24 revenues from Germany

** UBS sees an organic revenue growth towards the upper end of management of 3% and a 9% and 8% growth for 2026 and 2027 respectively

** Out of 16 analysts that cover Bechtle AG, eight rate the stock "strong buy" or "buy", ​six rate it "hold" and two​ "strong sell" or "sell" - LSEG

 (Reporting by Tiago Brandao)

 ((Tiago.Brandao@thomsonreuters.com;))