Computacenter Price Target Adjusted as Economic Pressures Weigh on Profit Forecast

October 29, 2024 08:16 PM AEDT | By Team Kalkine Media

Computacenter Price Target Adjusted as Economic Pressures Weigh on Profit Forecast — Image source: Shutterstock

Q3 Slowdown Due to Spending Cuts and North American Delays

Panmure noted that Computacenter's recent performance highlights a challenging market environment marked by a reduction in corporate IT spending. This slowdown, combined with order delays in the North American sector, has impacted the company's momentum as it heads toward the close of 2024. Panmure’s report also emphasizes that these factors could continue to influence Computacenter's revenue trends as the company navigates evolving economic conditions.

Foreign Exchange Pressures on Profit Forecast

Alongside operational challenges, Panmure highlighted the impact of foreign exchange headwinds, which are expected to reduce Computacenter’s adjusted profit before tax by £7-8 million this year. These adverse currency effects have added another layer of complexity to Computacenter's profit outlook, as fluctuating rates challenge the stability of its international revenue streams.

Margin Improvements Hold Potential for Medium-Term Value

While Panmure's target revision reflects near-term caution, the firm’s outlook also considers Computacenter's ongoing efforts to strengthen operational margins. According to the report, these initiatives may support medium-term value, especially as the company works to counter external pressures. As of the latest trade, Computacenter shares are exchanging hands at 2,330p.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.