Charles Brennan, an analyst from Jefferies, maintained the Hold rating on Bytes Technology Group Plc (BYIT – Research Report). The associated price target is p500.00.
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Charles Brennan has given his Hold rating due to a combination of factors influencing Bytes Technology Group Plc. The company has provided guidance for high single-digit growth in underlying operating profit, aligning with market expectations. However, a shift to an IFRS definition is expected to cosmetically reduce headline numbers by approximately 8%, which might take time for the market to absorb.
Despite these adjustments, the company’s strong cash flow dynamics are anticipated to provide support. The pre-announced results showed no surprises, with a 12% increase in gross profits and adjusted EBIT slightly surpassing expectations. Looking ahead, the focus is on the outlook, which suggests continued double-digit gross profit growth and high single-digit EBIT growth, aligning with consensus estimates.