Stifel has downgraded Computacenter from Buy to Hold, arguing its recent share price outperformance has brought the stock close to fair value. The brokerage raised its price target to 3,584p but sees limited upside from current levels, prompting a 3.2% drop in London trading.

Analyst Peter McNally noted Computacenter’s robust performance, with gross invoiced income rising 32% in FY25, led by strong Technology Sourcing growth. The AgreeYa acquisition is viewed as strategic, expanding North American services, while a record order backlog underpins future earnings potential.

Despite the positive outlook, valuation is the key constraint. Shares trade at roughly 19.4x FY25 earnings, though this falls excluding a £600 million cash pile. Stifel’s new target implies only about 7% upside, justifying a more neutral stance for investors.