Charles Brennan, an analyst from Jefferies, maintained the Sell rating on Softcat (SCT – Research Report). The associated price target was raised to p1,385.00.
Charles Brennan’s rating is based on several factors that suggest caution regarding Softcat’s stock. Despite a slight improvement in the second quarter of 2025 compared to the first, Brennan notes that the working capital dynamics do not indicate a significant positive shift in the underlying markets. This lack of a clear market inflection point contributes to a conservative outlook.
Furthermore, while there is a modest increase in the EBIT forecasts for the fiscal years 2025 and 2026, leading to a higher discounted cash flow valuation, Brennan maintains a cautious stance. The decision to keep the stock at an Underperform rating reflects concerns that the recent results, although better than initially feared, do not provide enough evidence of a strong recovery or growth trajectory.
According to TipRanks, Brennan is a 5-star analyst with an average return of 11.4% and a 65.14% success rate.