In a small trading update released Tuesday morning, Softcat (LON: SCT) told investors that demand in the first quarter has remained strong.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The IT infrastructure provider's shares initially fell at the start of Tuesday's session, hitting a low of 1,250p per share. However, they have regained those losses and are now up 0.08% at 1,277p. Still, the stock is down more than 29% in 2022.
The company told investors in its release that it performed well during the first quarter that ended October 31, with demand remaining robust and customer behaviour across all segments unchanged from the trends seen during the same period last year.
Trading is currently in line with the company's expectations and the outlook set at its previously released full-year results.
“The team has again delivered strong results during the first three months of the new financial year across all customer segments and areas of technology,” said Graeme Watt, Chief Executive Officer of Softcat.
“While the wider economic environment remains uncertain, we continue to see robust demand which highlights the critical role that IT infrastructure plays in modern organisations, whether public or private.”
Earlier this month, Berenberg reduced their target price on Softcat from 1,900p to 1,500p but stated nuances still made the stock “a winner”.
Berenberg explained that following years of “impressive growth,” IT resellers now face “more uncertain times,” but with the stock having declined, providing a discount to its historical price-to-earnings ratio, now could be “an interesting time” to buy.
According to TipRanks, out of five analysts, three have a Buy rating on Softcat shares, with two at Hold.