Datagroup: Berenberg's top pick in German IT companies

Datagroup SE

09/04/2019 07:07

** Berenberg believes German IT market will experience
softer growth in 2019 on the back of  slowing economy
    ** " ...  we tilt our preference towards companies with a
greater share of recurring revenues and margin uplift potential
in 2019" the broker says
    ** It sees trends of digitalisation, shift to the cloud and
increasing focus on cyber security continuing to underpin growth
in German IT market
    ** Berenberg starts Datagroup  D6HG.DE  with "buy", with a
top pick tag -- co's focus on managed services means it
generates double-digit EBITDA margins
    ** Cancom  COKG.DE  gets upgraded to "buy" as cloud leader
with attractive optionality 
    ** Brokerage cuts Bechtle  BC8G.DE  to "hold" saying it is
the most economically exposed company in its coverage
    ** "We think Bechtle could face a significant headwind in
H1", it adds

 ((joanna.wodzicka@tr.com))