Bechtle Stock: Shares Surge Despite Cautious Outlook

Bechtle AG has experienced significant gains on the stock market recently, with shares climbing over 9% to reach a new yearly high despite the IT service provider's cautious projections for 2025. CEO Thomas Olemotz indicated at Friday's financial press conference that particularly the first half of 2025 might show weakness due to ongoing economic strain among mid-sized customers and notably absent orders from the public sector ahead of Germany's government formation. The company forecasts flat to modest growth of up to 5% in business volume for 2025, while revenue could fluctuate between a 3% decrease and a 3% increase. Despite these reserved expectations, investors responded positively, viewing the conservative outlook as establishing a minimum threshold for the year's performance. The 2024 results showed mixed performance, with business volume rising 2% to approximately €7.9 billion, while revenue declined nearly 2% to €6.3 billion and pre-tax profit fell by almost 8% to €345 million.

Analysts Remain Optimistic About Future Prospects

Financial experts maintain a predominantly positive outlook for Bechtle, with an average price target of €43.83, suggesting a potential upside of approximately 12% from current levels. Analysts project earnings per share of €1.96 for 2024 and anticipate a slight dividend increase to €0.705, up from the stable €0.70 dividend maintained despite the profit decline. Market observers expect positive news regarding public sector orders once Germany's new government takes office. The stock has shown remarkable recovery from its January multi-year low below €29, successfully breaking through important technical resistance at the 200-day moving average.