Cancom: Cost Discipline, Public Sector Recovery, and AI-Driven Demand Support Buy Rating Despite Hardware Supply Risks

Jefferies analyst Martin Comtesse maintained a Buy rating on CANCOM SE today and set a price target of €32.00.

Martin Comtesse has given his Buy rating due to a combination of factors including Cancom’s successful cost adjustments and signs of recovery in its German public sector business after a challenging FY25. Despite a 3.7% decline in the German segment, the International division returned to growth, and the company maintained a stable dividend of €1.0 per share, signaling confidence in its financial position.

For 2026, management’s revenue target of €1,750-1,850m, with a midpoint broadly in line with consensus, underpins a constructive outlook driven by demand for infrastructure, digitalisation, AI transformation, and data sovereignty solutions. While the ongoing DRAM shortage and related hardware cost and supply risks create elevated uncertainty, Comtesse views the guidance as largely anticipated by the market, with the midpoint of EBITDA only slightly below forecasts, supporting an overall positive risk-reward profile for the stock.

According to TipRanks, Comtesse is ranked #11669 out of 12068 analysts.