Computacenter (LON: CCC) released a business update on Monday, based on preliminary financial information not audited, for the year ended December 31, 2021.
Computacenter is an IT services provider and technology infrastructure manager.
Computacenter Keeps Inventories High
The British IT services company said that the group had larger than usual inventories to cope with product shortages.
Computacenter said it had a strong fourth quarter, and the strongest annual revenue growth for its services business in two decades.
Total revenue increased by 23%, including the effects of acquisitions made since the start of 2020, and by 27% at constant exchange rates.
The company said its product backlog has never been fuller, with customers ordering earlier to make up for product shortages.
Computacenter expects adjusted profit before tax for the year ending December 31 to be just over 250 million pounds ($338.55 million).
Computacenter will release its final results for the year on Wednesday, March 16, 2022.
Wall Street’s Take
Two weeks ago, Barclays analyst James Goodman kept a Hold rating on CCC and a 3,160p price target. This implies 20.6% upside potential.
Overall, CCC scores a Moderate Buy analyst consensus rating based on one Buy and two Holds. The average Computacenter price target of 3,203.33p implies 22.3% upside potential to current levels.
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