Broker tips: Admiral, Computacenter, Asos

(Sharecast News) - Analysts at Berenberg cut their rating on Admiral from 'buy' to 'hold' on Thursday, saying the shares now look fully valued after a sharp rebound this year.

Berenberg said the insurer's business quality and sector backdrop remain intact, but stated the nearterm risk profile has become more balanced. Admiral's shares traded below 2,700p during January's autonomousvehicle scare, hitting decadelow valuation levels, before rallying 55% as concerns faded and pricing conditions improved.

The German bank said the stronger earnings outlook was now well reflected in consensus forecasts, prompting the downgrade, while its 4,200p price target remained unchanged. Estimates were trimmed slightly to reflect a more cautious view on reserve releases in FY26/27.

Berenberg noted that fears over autonomousvehicle disruption have eased, with insurers highlighting a better pricing environment. Admiral's H1 pretax profits fell 18% yearonyear due to lower earned premiums and softer market conditions, but management has pushed through highsingledigit rate increases and peers appear to be following suit. Consensus now expects H2 pretax profit of £526m, up 20% yearonyear, and £1.1bn in FY27 - ahead of Berenberg's own forecasts.

The broker added that Admiral's valuation has normalised, trading near 16x FY earnings, only slightly below its fiveyear average and at a justified premium to the wider European sector given its historically superior cycle management and combined ratios.

Peel Hunt upgraded Computacenter to 'buy' from 'add' on Thursday and hiked the price target to 6,000p from 4,400p as it said there was "more to come".

The broker said that given the increasing focus on compute build-out and historical H1/H2weighting, it is lifting its FY 26 adjusted pre-tax profit forecast by 8% to £350m, versus consensus expectations of £337m.

Peel Hunt said expansionary comments from key customers over the summer, and improving monetisation, increase its conviction on a multi-year view.

"Hence, we increase adjusted EBIT forecasts for FY 27E by 10% to £394m (consensus: £364m) and FY 28E by 11% to £427m (consensus: £385m)," it said, noting that its conviction was now for a materially higher spend in FY 27E for key customers, versus FY 26.

"We are cognisant of the risks related to hyperscale visibility, but believe improving monetisation will re-enforce their spending targets," it said.

Shore Capital lifted its price target on Asos on Thursday to 520p from 420p as it pointed to increased confidence in the online retailer and the sector backdrop.

The broker noted that Asos shares have performed well so far in 2026, up 46% year-to-date and around 17% since its last note in July.

"We believe this reflects growing confidence in the group's turnaround, helped by a more engaged investor relations strategy, supportive sector and macro read-across, plus recognition of the operational progress achieved over the past two years," it said.

The broker said while the market remains competitive, with ongoing headwinds in areas such as sportswear, there has also been positive recent read-across from the likes of Next and data points from BRC, Barclaycard, GfK and the Asda Income Tracker, which suggest online sales, clothing demand and consumer confidence have held up over the summer months.

"Going forward, with balance sheet concerns now reduced, the investment debate has moved on from recovery to whether Asos can return to sustainable top-line growth, and improved profit and cash generation," it said. "The September trading update is therefore important to see if trends have continued during H2 and to assess the early FY27F, and medium term prospects."

Peel hunt, which reiterated its 'buy' rating on the stock. said its new price target suggests 25% upside with a circa 6x enterprise value-to-underlying earnings ratio, which it stated was still a discount to peers.