Citi sees little change for software, IT services in Q1
17/04/2024 11:18
** In a note on European software and IT services, Citi says
it expects the Q1 earnings focus to be firmly on end demand,
including the potential of recovery and timeline on demand
inflection
** Citi anticipates a continuation of trends from late last
year with mixed end-markets, prioritisation of spend and low
visibility in the near term
** It expects companies in its coverage to reiterate their
2024 outlooks, and turns more selective on the sector
** Citi opens a negative catalyst watch on "neutral"-rated
Hexagon HEXAb.ST and Netcompany NETCG.CO , expecting their
results to be below consensus and a risk to 2024 expectations
** Capgemini CAPP.PA and SAP SAPG.DE (both "buy") remain
Citi's top two picks, but it says the set-up in results is more
in balance
** It also maintains "buy" on Nemetschek NEKG.DE , Sage
SGE.L and Exclusive Networks EXN.PA , and "neutral" on
Dassault DAST.PA and SoftwareOne SWON.S
(Reporting by Marta Frąckowiak)
((marta.frackowiak@thomsonreuters.com))