2Q26 - Unlikely to Be a Major Catalyst

Research evidence excerpt

2Q26 - Unlikely to Be a Major Catalyst

ocks in Focus:

Computacenter (Buy) - The best way to play the sector is to try and back positive forecast•

momentum. Top of the pile for us is Computacenter which is our favoured "picks and

shovels" play on AI capex. Key partners for Computacenter, like Dell, have been reporting

accelerating growth and this is a rising tide that looks set to lift Computacenter. We raise .Source: Jefferies

our PT to 5,000p.

Sage (Buy) - Sage is another company where forecasts look readily achievable. Sage is Chart 2 - 2Q Timeline•

having some success monetising AI - through higher bundle pricing - and this is a lever

supporting accelerating growth. Growth has now improved for 4 consecutive quarters

and the most recent ARR growth of 10.6% should underpin 2H26 expectations. We lower

our PT to 1,000p, though Sage remains one of preferred names in the sector. .Source: Jefferies, Company data

SAP (Buy) - We expect CCB growth of 25%. This is in line with the 1Q26 run rate, but•

now includes a c1ppt inorganic contribution. We see SAP as the most proactive in our

coverage, pivoting the company to an AI-first model. However, incentivising customer

adoption pushes monetisation to the right. While strategically SAP is making the right

decisions, given the importance of 4Q, we expect investors to defer judgement. Share

price weakness across peers leads us to lower our PT to €210.

Capgemini (Hold) - We expect solid results and conservative FY26 guidance to be raised•

to meet consensus. However, in a global sector, sentiment is set by sub-sector newsflow

and share price pressure at Accenture makes it difficult for Capgemini to perform,

especially now that Capgemini trades on a material premium to Accenture. We lower our

PT to €95.