- Computacenter
- 13 March 2026 09:19:26
Source: Sharecast
The bank noted that Computacenter shares ended down 4% on Thursday following its full-year results, having been down as much as 7% intraday.
It said that with the shares now down 11% from 52-week highs, "an attractive entry opportunity has emerged for investment into a demonstrable AI winner", with Computacenter’s US business benefitting directly from AI infrastructure capex.
"We discussed the results and outlook with a number of investors yesterday and believe that concerns around the free cash flow cuts are overdone," it said. "In our view, we think Computacenter has earned the right to allocate incremental growth capex (equivalent to less than 2% of market cap) to its critical US market - which grew EBIT 88% YoY cc through FY25."
JPM said it was surprised the market has not looked as favourably upon this dynamic at initial blush, though it also acknowledged that expectations were somewhat elevated coming into the release, given the recent beat and raise pre-release.
"This combination of higher expectations and ultimately an unexpected FCF cut weighed on the shares yesterday," it said.
"But fundamentally, we think growth capex into the US market (which is supply-constrained and the no.1 growth driver for Computacenter currently) makes strategic sense, given the circa £5bn order book and margin-accretive AI-driven growth on offer."
With achievable earnings expectations through FY26 and a multiple now in line with historical averages, the bank reiterated its overweight preference for Computacenter.