Jefferies names 2024 top picks for software and IT services
08/01/2024 13:51
** Jefferies doesn't expect software and IT services firms
that led the sector in 2023 to continue their outperformance,
favouring what it calls "more controversial" names instead
** The broker notes the sector's "unexpected robust
performance" in 2023, outperforming STOXX 600 .STOXX largely
due to multiple expansion rather than earnings growth
** Going into 2024, Jefferies' top picks are Amadeus
AMA.MC for its potential to compound double-digit percentage
growth and Computacenter CCC.L for its strong balance sheet
and growth prospects
** It also highlights Sage SGE.L thanks to its
transformation into a platform provider with a diverse portfolio
** Jefferies ups Temenos TEMN.S to "buy" from "hold",
noting easing hurdles for the investment case and a potential
for increased cash flow
** The broker cuts Byggfakta BGNH.ST to "hold" from "buy"
and revises PT to SEK 46, in line with Macquarie consortium's
buyout bid which it expects to go through
(Reporting by Tilla Sjaavaag)
((tilla.sjaavaag@thomsonreuters.com; +48 58 7696600;))