Citi upgrades Softcat, says premium valuation ‘here to stay’

Citi upgraded its stance on shares of IT infrastructure and services provider Softcat on Monday to ‘neutral’ from ‘sell’ as it said the premium valuation is here to stay.
The bank said its ‘sell’ thesis on Softcat assumed the company would be unable to maintain its valuation premium against peers through the pandemic.

“But given the strong trading conditions of the last twelve months driven in part by the shift to remote working, we now believe that this premium will persist and upgrade the stock to neutral,” it said.

At 1015 GMT, the shares were up 0.7% at 1,585.95p.