In-line as expected; encouraging services momentum, but the path to an EBIT beat in FY27 is narrow

研报英文原文证据摘录

In-line as expected; encouraging services momentum, but the path to an EBIT beat in FY27 is narrow

IT Services

Bytes Technology Group plc (BYIT LN)

EQUITY RESEARCH Quick Take

May 12, 2026

In-line as expected; encouraging services momentum, Price: 318.00p

Price Target: 283.00p but the path to an EBIT beat in FY27 is narrow

Rating: Neutral Takeaways

Key Statistics: Bytes' FY26 results and FY27 guidance were fully in line with the March

Symbol LSE: BYIT LN trading update, and while there are encouraging early signs of operational

52-Week Range 248.60 - 546.85 recovery – notably 38% services GP growth and a clear H2 inflection – the Market Cap 751.7

ADV (3 mo) 944,572 investment case lacks a near-term re-rating catalyst. The path to a positive

Shares Out (M) 236.4 earnings surprise in FY27 is narrow: with EBIT guided flat and the cost base

continuing to grow, Bytes needs GP growth to accelerate meaningfully

Research Analysts: above the top end of its HSD-LDD guidance range to generate the

Bharath Nagaraj operating leverage that would drive consensus upgrades and a re-rating.

Cantor Europe Absent that, the alternative re-rating scenario rests on Bytes exiting +44 20 7894 7347

Bharath.Nagaraj@cantor.com FY27 with strong enough momentum to make FY28 a genuine earnings

inflection year – but that requires sustained GP acceleration through the

One-Year Price History year, which the current set-up does not yet guarantee. Until we see either

600 of these conditions taking shape, we see limited reason for the shares,

550 500 which trade at c.14.6x P/E on FY27 Street estimates, to re-rate. We retain

400 our preference for Softcat (OW) and Computacenter (N), both of which

300 250 are already delivering the operating leverage and estimate upgrade cycle