Shares of Softcat plc (LON:SCT) have received a consensus rating of “Hold” from analysts, according to a report by MarketBeat. The assessment comes from nine rating firms currently covering the company. Within this group, two analysts have recommended selling the stock, one has maintained a hold stance, while six have issued buy recommendations.
The average target price for Softcat shares, based on reports from brokerages in the past year, stands at GBX 1,902.22. Several firms have recently updated their ratings. Notably, Peel Hunt reaffirmed a “buy” rating and set a target price of GBX 2,135 on November 18, 2023. Additionally, Deutsche Bank Aktiengesellschaft upgraded Softcat to a “buy” rating, increasing their price target from GBX 1,830 to GBX 1,900 on October 23, 2023.
On the same day, JPMorgan Chase & Co. elevated their rating to “overweight” and raised their price objective from GBX 2,820 to GBX 2,950. Meanwhile, Jefferies Financial Group adjusted their target from GBX 1,400 to GBX 1,450, assigning an “underperform” rating. Lastly, Shore Capital reiterated a “buy” rating with a target price of GBX 1,925 on October 22, 2023.
Current Market Performance
As of Wednesday, shares of Softcat opened at GBX 1,374. The company boasts a market capitalization of £2.74 billion, with a price-to-earnings ratio of 20.76 and a price-to-earnings-growth ratio of 11.51. The stock has shown volatility, with a 52-week low of GBX 1,370 and a high of GBX 1,960.
Softcat’s financial health reflects positively with a quick ratio of 1.38 and a current ratio of 1.60. The company has a debt-to-equity ratio of 3.48, indicating a relatively high level of debt compared to equity. The stock’s 50-day moving average price stands at GBX 1,463.06, while the 200-day moving average price is GBX 1,561.25.
Recent Earnings Report
On October 22, 2023, Softcat released its quarterly earnings report, announcing earnings per share of GBX 69.50. The company recorded a net margin of 12.37% and a return on equity of 43.79%. Analysts forecast that Softcat will achieve earnings per share of 60.72 for the current fiscal year.
Softcat plc operates as a value-added IT reseller and infrastructure solutions provider, primarily in the United Kingdom. The company specializes in advising, procuring, designing, implementing, and managing a variety of technology solutions. These include software licensing, workplace technology, networking, security, and cloud and data center services for both businesses and public sector organizations.
In addition to core services, Softcat offers public cloud, collaboration, connectivity, data center and private cloud services, as well as IT asset management and lifecycle solutions. With a focus on modern management, security, and virtual desktop applications, the company is well-positioned in the competitive IT landscape.
Investors remain attentive to how Softcat navigates its financial strategies and market performance amid the evolving technological demands.
