'Resilience the name of the game' - Citi picks IT services & software stocks for 2023
16/01/2023 10:50
** Citi sees resilience to be "the name of the game" in 2023
for European IT services & software against a backdrop of
rolling recessions and hence stays selective within the sector
** Resilience in software will primarily be driven by
orientation of demand and cloud transition profiles, while in IT
driven by strategic positioning and overall execution, says Citi
** Expects a "steady" Q4, broadly in line with expectations,
but a "much more conservative tone" for Q1 and the rest of the
year
** On a 12-month view, the broker's most preferred names are
Sage SGE.L and Capgemini CAPP.PA , both "buy"-rated
** It also maintains "buy" on Nemetschek NEKG.DE
** Citi's least preferred stocks are Netcompany NETCG.CO ,
AtoS ATOS.PA , both "neutral"-rated, but considered high-risk
stocks
** The brokerage also keeps its "neutral" rating on SAP
SAPG.DE , Dassault Systemes DAST.PA , Hexagon HEXAb.ST
(Reporting by Marta Frackowiak)
((marta.frackowiak@thomsonreuters.com))