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(Sharecast News) - Analysts at Berenberg lifted their target price for Computacenter from 3,450p to 5,300p and upgraded the stock to 'buy' on Monday, arguing that the group was now well positioned to beat current profit expectations after a strongerthanexpected first half.
Berenberg said its revised stance followed Computacenter's H126 trading update, which pointed to a "strong" second quarter and adjusted pre-tax profits of around 163m - roughly double the 81.5m delivered in H125 and ahead of the 155m consensus.
Growth with hyperscale customers in North America remained a key driver across both technology sourcing and professional services, while the UK also delivered "excellent" momentum. Germany saw solid technology sourcing growth, though professional services remained subdued.
The German bank now expects a materially higher proportion of gross profits to drop through to operating profit, raising its gross profits forecasts by 4%, 5% and 6% for FY26-FY28, and liftinh adjusted operating profit estimates by 17%, 15% and 17%, respectively. For FY26, Berenberg now forecasts adjusted operating profits of 349m, implying 27.1% OP/GP conversion, compared with the 24.7% implied by prior consensus.
Berenberg added that management's longterm aim of achieving 30% OP/GP conversion supports its view that margins can continue to improve as North America and the UK maintain strong momentum and Germany gradually recovers.
Berenberg also flagged hyperscaler datacentre buildout as a key risk, though it noted that strength in nonhyperscale business lines in North America and the UK, alongside improving trends in Germany, provided some offset.
Computacenter currently trades on 18.2x FY26 P/E, added Berenberg.
RBC Capital Markets upgraded Atalaya Mining Copper on Monday to 'outperform' from 'sector perform' and lifted its target price on the stock to 1,100p from 1,000p following a "strong" second-quarter update and what it views as a "material political" shift in favour of Touro permit approval.
The Canadian bank said Atalaya's Q2 production update showed strong operating results and good cost control, after heavy rainfall caused a weak start to the year. This, coupled with the equity raise in January, sees net cash compound to 340m at Q2 end, above RBC's capex estimate of 320m for Touro and company guidance of 300m.
"We forecast positive net cash through peak capex in 2027, even if spot prices fall 20%. Should Atalaya wish to preserve additional financial flexibility, we think there is meaningful headroom to layer-in project debt facilities, an option we would expect to be formalised at FID," said RBC, which also noted that the political environment has shifted materially in Touro's favour recently.
"The High Court of Justice of Galicia voided the 2020 negative environmental ruling, senior Xunta officials have made publicly supportive parliamentary statements, and ATYM believes that the DIA [environmental impact statement] is now 'under preparation'," it said. "We believe sufficient political will exists for the Xunta to advance the DIA given the launch of a new mining rights tender in Galicia and the incentive to bank an economic win ahead of regional elections in May 2027."
RBC, whose base case assumes receipt of the permit in the third quarter of this year, said the stock's valuation was compelling and noted that Atalaya shares have underperformed the FTSE 350 Metals & Mining index by 20% year-to-date and the valuation spread versus Chilean copper miner Antofagasta has also widened back to 40%, near its widest level since initiation.
"At spot, Atalaya trades at 0.4x P/NAV and 3.1x 2026e EV/EBITDA, a discount to intermediate copper peers of 0.7x P/NAV and 5.5x 2026e EV/EBITDA," RBC said.