Jefferies Financial Group Reaffirms Hold Rating for Softcat (LON:SCT)

Softcat (LON:SCT)‘s stock had its “hold” rating restated by analysts at Jefferies Financial Group in a research report issued on Wednesday, Digital Look reports. They currently have a GBX 1,700 price target on the stock. Jefferies Financial Group’s target price points to a potential upside of 0.18% from the stock’s previous close.

Other analysts also recently issued research reports about the stock. Deutsche Bank Aktiengesellschaft downgraded shares of Softcat to a “hold” rating and lifted their target price for the company from GBX 1,800 to GBX 2,140 in a report on Wednesday, August 26th. JPMorgan Chase & Co. raised their price target on Softcat from GBX 1,950 to GBX 2,300 and gave the stock an “overweight” rating in a research report on Monday, September 7th. Finally, Berenberg Bank increased their target price on Softcat from GBX 1,950 to GBX 2,400 and gave the stock a “buy” rating in a research note on Monday, September 21st. Four investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Softcat has an average rating of “Hold” and a consensus price target of GBX 1,993.75.

Softcat Trading Down 1.3%

LON:SCT traded down GBX 22 on Wednesday, reaching GBX 1,697. The company’s stock had a trading volume of 22,005,324 shares, compared to its average volume of 1,884,231. Softcat has a 12-month low of GBX 1,083 and a 12-month high of GBX 2,134. The stock has a 50 day moving average price of GBX 1,940.87 and a 200 day moving average price of GBX 1,739.06. The firm has a market cap of £3.65 billion, a price-to-earnings ratio of 24.21, a price-to-earnings-growth ratio of 11.51 and a beta of 0.58. The company has a quick ratio of 1.38, a current ratio of 1.25 and a debt-to-equity ratio of 13.07.

Softcat (LON:SCT) last issued its quarterly earnings data on Wednesday, October 14th. The company reported GBX 75.80 earnings per share (EPS) for the quarter. Softcat had a return on equity of 45.16% and a net margin of 8.06%. On average, equities analysts anticipate that Softcat will post 60.72 EPS for the current fiscal year.

Insider Transactions at Softcat

In other news, insider Kathryn Mecklenburgh bought 176 shares of the business’s stock in a transaction that occurred on Monday, September 7th. The shares were purchased at an average cost of GBX 2,045 per share, for a total transaction of £3,599.20. Also, insider Graham Charlton bought 176 shares of Softcat stock in a transaction that occurred on Monday, September 7th. The stock was purchased at an average cost of GBX 2,045 per share, for a total transaction of £3,599.20. Insiders acquired a total of 384 shares of company stock worth $749,739 in the last ninety days. 2.91% of the stock is owned by corporate insiders.

Key Softcat News

Here are the key news stories impacting Softcat this week:

• Positive Sentiment: Strong full-year performance: Softcat reported fiscal 2026 revenue growth of 35.4% and a 19.4% increase in profit, beating expectations. The company also raised its dividend, supporting the income case for shareholders. Softcat FY2026 profits rise 19.4% as revenue grows 35.4%
• Positive Sentiment: U.S. expansion provides a growth opportunity: Softcat is moving into the U.S. market through a deal with GDT, potentially broadening its addressable market and creating a new source of longer-term growth. Softcat posts double-digit profit growth and moves into U.S. market with GDT deal
• Positive Sentiment: Potential upside identified: An analysis of the IT-reseller sector argues that Softcat could have approximately 25% potential upside, which may support investor interest if execution remains strong. Softcat stock analysis
• Neutral Sentiment: Directors subscribed for new shares: Softcat directors agreed to buy 12,432 new ordinary shares, lifting the total share count to 215.7 million. The purchases may signal management confidence, although the new issuance creates modest dilution for existing shareholders. Softcat directors subscribe to new equity
• Negative Sentiment: Slower outlook pressured the shares: Reports indicate that fiscal 2027 growth guidance points to a moderation from the exceptional fiscal 2026 pace. This has prompted investors to take profits after the strong results, with the shares falling despite the earnings beat. Softcat shares fall as outlook points to slower growth
• Negative Sentiment: Analyst stance remains cautious: Jefferies reaffirmed a “hold” rating and set a GBX 1,700 price target, suggesting limited near-term upside around the current trading level.

Softcat Company Profile

Softcat plc operates as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom. The company advices, procures, designs, implements, and manages technology, such as software licensing, workplace technology, networking, security, and cloud and datacenter for businesses and public sector organizations. It also offers public cloud, collaboration, connectivity, data centre and private cloud, devices, and financial solution services. In addition, the company provides IT asset management, lifecycle solutions, modern management, security, software licensing, supply chain operation, and virtual desktop and application.