Computacenter stock advanced 2.6% to 4,568p following a bullish note from Stifel that moved the IT services and technology infrastructure provider from Hold to Buy and set a new price target of 5,235p, up sharply from the previous 3,584p target.
Stifel framed the upgrade around a materially changed earnings trajectory over the past six months. The broker now expects 26% EPS growth for FY26, a significant revision from the 6% growth it forecast six months earlier. That shift in expectations underpins the broker's more positive stance on the shares.
A cornerstone of Stifel's conviction is Computacenter's record order backlog. The backlog has climbed to a new high, rising by more than 200% year-over-year from £7.1 billion at the end of FY25. Stifel attributed this jump to heightened enterprise and hyperscaler demand for AI-related infrastructure, which it views as supporting stronger forward revenue visibility.
Alongside the upgrade, Stifel raised its adjusted profit before tax estimates. The broker lifted its FY26 adjusted PBT estimate by 16% to £336.2 million and increased its FY27 figure by 13% to £350.3 million. Those upward revisions signal Stifel's expectation of sustained earnings momentum into the medium term.
On the broader UK market, the FTSE 100 traded marginally higher while the FTSE 250, where Computacenter is listed, was also modestly positive. Market participants were managing a mix of influences, including rising oil prices and escalating US-Iran geopolitical tensions around the Strait of Hormuz—the latter cited as a source of market caution.
That mixed but broadly resilient backdrop in UK equities left room for company-specific news to dominate share price moves. In this context, the combination of a high-conviction analyst re-rating, a sharply expanded order backlog, and firmer profit forecasts propelled Computacenter shares higher, bringing the stock within striking distance of its 52-week high of 4,702p.
Summary: A Stifel upgrade to Buy, a substantial increase in the price target, stronger EPS expectations and a record backlog tied to AI infrastructure demand drove Computacenter shares higher, with the stock nearing its 52-week peak against a cautious but resilient UK market.