European IT resellers: Citi sees 'two-way pull' of macro risks vs digital shift

Exclusive Networks SAS

21/01/2022 08:36

** Citi sees a potential "two-way pull" in the year ahead
for European resellers in the IT services sector
    ** "On the one hand the digital transformation trend looks
robust ... but on the other hand the macro outlook seems
valuation-unfriendly," the broker says
    ** Citi says Softline  SFDGk.DE  ("buy") is the "clear
choice" for reseller investors in 2022
    ** Softline trades at a significant discount to European
peers, the broker says, adding it expects this discount to
dissipate over time, offering an attractive investment
opportunity
    ** The broker upgrades Exclusive Networks  EXN.PA  to "buy"
from "neutral", saying the company offers an attractive blend of
emerging and developed market exposure
    ** It cuts Computacenter  CCC.L  to "neutral" from "buy" as
it expects the company's earnings growth to slow to a much more
modest pace and share price to pause for the next 12 months
    

 (Reporting by Tommy Lund)
 ((Tommyalexander.lund@thomsonreuters.com))