Computacenter shares advanced 4.8% to 5,465 pence on Tuesday, briefly touching an intraday 52-week high of 5,500 pence, after Peel Hunt upgraded the stock to "buy" from "add" and raised its price target to 6,000 pence from 4,400 pence.
The brokerage cited an underestimated first-half earnings beat and a more optimistic outlook for fiscal 2027 spending by key customers. Computacenter, a Hatfield-based enterprise infrastructure integrator recently promoted to the FTSE 100, left its full-year adjusted pre-tax profit forecast unchanged at £324 million ($440.38 million).
Peel Hunt emphasized growing conviction in a material increase in spending for fiscal 2027 compared with fiscal 2026, underpinning the upgraded rating. The stock’s rally follows broader tech sector strength, with Nvidia reporting a 106% year-on-year revenue increase to $96.2 billion for the quarter ended July 26, driven by a 117% surge in data center revenue to $89 billion.
Nvidia’s third-quarter revenue guidance of approximately $108 billion, ahead of the $104.2 billion consensus, further supported investor sentiment. The company also projected gross margins of around 74% for the period.
The FTSE 100 slipped 0.1% to 10,878.12 in the prior session, weighed down by U.S. inflation data. The U.S. PCE price index rose 3.7% year-on-year in July, marginally exceeding the 3.6% forecast.
