Computacenter shares gain after Berenberg upgrades stock and raises profit forecasts

Shares in Computacenter PLC (LSE:CCC) climbed on Monday after Berenberg upgraded the IT services provider to “buy” from “hold” and significantly increased its price target to 5,300 pence from 3,450 pence. The broker said the company is well placed to deliver earnings ahead of current market expectations.

Computacenter’s shares rose 3.6% to 4,746 pence during London trading, comfortably outperforming the FTSE 100, which declined 0.3% over the same period.

Berenberg said its more optimistic outlook followed Computacenter’s first-half trading update, which highlighted stronger-than-expected demand from hyperscale customers in North America, continued solid growth in the UK and improving trading conditions in Germany.

The broker expects adjusted profit before tax for the first half to reach around £163 million, ahead of the market consensus of £155 million. It also noted that management now expects full-year results to be comfortably above existing market forecasts.

Reflecting the stronger outlook, Berenberg increased its gross profit forecasts by 4% for 2026, 5% for 2027 and 6% for 2028. The brokerage also raised its adjusted operating profit estimates by 17% for 2026, 15% for 2027 and 17% for 2028.

Berenberg now forecasts adjusted operating profit of £349 million for 2026, compared with the previous consensus estimate of approximately £318 million. The broker said the upgrade reflects expectations that a larger proportion of gross profit will convert into operating earnings, supported by stronger operational leverage.

Looking ahead, Berenberg believes continued momentum in North America and the UK, combined with an improving performance in Germany, could drive further earnings growth. It also highlighted management’s long-term objective of achieving a 30% operating profit-to-gross profit conversion rate as a positive indicator for future profitability. However, the broker cautioned that any slowdown in hyperscale data centre investment, particularly from Meta, remains the principal risk to the investment case.