UBS starts Cancom at 'buy,' sees boost from Germany's digital push
BUZZ-UBS starts Cancom at 'buy,' sees boost from Germany's digital push ** UBS initiates Cancom COKG.DE at "buy," seeing the German IT services provider as well positioned to benefit from accelerating public-sector digitalisation spending and a recovery in small and medium-sized business demand
** Germany's federal budget calls for a 50% increase in digitalisation spending next year, while the €5 billion Digitalpakt 2.0 programme has recently entered into force, UBS notes
** The broker expects Cancom's exposure to smaller businesses and local public-sector customers to become a tailwind into 2027 after weighing on performance relative to peers in recent years
** "The market is likely concerned about demand destruction from higher memory prices," UBS says, but expects demand for servers, networking equipment and software growth to offset the impact
(Reporting by Kira Britten)