UBS upgraded Softcat to Neutral from Sell after the IT services provider's shares fell roughly 40% from their June 2025 peak. The firm lowered its price target to 1,225 pence from 1,450 pence, citing a more balanced risk-reward profile following the steep decline.

The valuation reset makes Softcat's current trading level of 15 times forward price-to-earnings ratio appear fair, down from a historical average of 25 times. UBS expects the company to deliver high single-digit EBIT growth over the medium term, though the firm stopped short of recommending a more positive stance given the limited upside potential.

UBS forecasts strong first-half results on March 18, 2026, with gross profit growth of 16% to £259 million and adjusted EBIT growth of 13% to £83 million. The firm also sees potential for Softcat to raise its guidance for gross profit growth from high single-digit to low double-digit, with adjusted EBIT growth potentially reaching mid single-digit levels.