Bank of America has upgraded price targets and ratings on a slate of European IT services and payments stocks, citing improved organic growth outlooks and valuation support.
The bank maintained a Buy rating on Capgemini, raising its fiscal 2026 organic growth forecast to 4.0% from 3.1% and keeping its price objective at €139. BofA also lifted its 2026 operating margin projection to 13.7% and now expects organic free cash flow of €1.8 billion. The stock trades at roughly a 40% P/E discount to global peers, with a 2026 free cash flow yield of 9.7% expected to rise to 13.0% by 2028.
Netcompany’s price target was raised to DKK 417 from DKK 415, implying a 33% potential upside, as BofA highlighted the company’s proprietary product and platform-led strategy across tax, customs, defense and broader European digital transformation. The bank projects mid-term CAGRs of 8% for organic revenue, 12% for adjusted EBITDA and 36% for free cash flow through 2028.
Computacenter’s target was lifted to 6,014 pence from 5,552 pence, a 19% implied upside, with BofA increasing its 2026 P/E multiple to 26x from 24x amid a peer rerating during the second-quarter reporting season. The company is scheduled to report first-half 2026 results on September 8.
Adyen’s revenue growth forecast for 2026 was raised to 20.9% excluding M&A, with 2028 CAGR projections of 20% for revenue and 23% for EBITDA. Growth is expected to be driven by merchant expansion, wallet share gains and new merchant wins, including OpenAI. Wise retained its Buy rating after posting better-than-expected first-quarter results, with BofA calling it a structural beneficiary in cross-border payments.
Remitly maintained its Buy rating following second-quarter results that beat expectations and an upward revision to full-year guidance. The bank projects 2026–2028 CAGRs of 20% for revenue, 34% for adjusted EBITDA and 22% for free cash flow.
Sabre’s price objective was raised to $2.30 on higher estimates, with BofA expecting the company to outpace the global distribution system industry on air bookings due to NDC scaling and improving corporate and U.S. market mix. Hotelbeds (HBX) also retained its Buy rating, with BofA citing an underappreciated business moat and expected growth reacceleration in the fourth quarter and fiscal 2027.
