Bechtle's Real-Deposit Value surges in IT sector: Significant price increase - could this be the start of further gains?
The outlook for Bechtle, the German IT service provider, is cautiously positive following signs of business revival in Q2 2025. Despite a 20% decline in net profit compared to the previous year, partly due to a one-off positive effect the prior year, the company has reported a 5.1% increase in business volume to €1.93 billion and a slight 0.8% increase in revenue to €1.49 billion.
These encouraging figures are largely attributed to strong international growth, notably in the Benelux and UK markets, and an incremental recovery in the German public sector. The earnings before taxes improved relative to Q1, indicating a gradual recovery momentum.
Despite the positive signs, Bechtle maintains its fiscal 2025 forecast of earnings fluctuating between a 5% decline and 5% growth, with business volume expected to rise slightly while revenue growth may lag due to the evolving software business and accounting for partial revenue recognition from software sales.
CEO Dr. Thomas Olemotz has emphasised that while ambitious growth targets have not yet been met, Q2 results have put the company back on track for growth. Analysts note that Bechtle must accelerate growth in the latter half of 2025 to fully recover and move beyond the prolonged downturn experienced over recent years.
UBS analyst Christopher Tong has welcomed the positive statements about demand development, especially since competitors have recently complained about the caution of the state in IT spending. Andreas Wolf of Warburg Research has highlighted the visible signs of recovery in Bechtle's current figures. Jefferies expert Martin Comtesse sees Bechtle at a turning point for the better and has maintained a "Buy" rating with a price target of 48 euros.
The current trend is favourable compared to cautious or lowered forecasts from competitors like Cancom. However, visibility remains limited, and a return to double-digit growth is not imminent.
Investors are betting on this scenario, with DER AKTIONÄR investing in Bechtle's potential in the Real-Depot. Wolf sees the Bechtle stock fairly valued at 44 euros for now. A sustainable break above the 40 euro mark from a chart perspective could unlock potential towards 48 euros.
Overall, Bechtle is experiencing a business revival with growth potential, mainly fueled by international markets and public sector demand, supported by management confidence and analyst optimism. However, it faces challenges to sustain and accelerate growth beyond a modest improvement in 2025.
- In the tech-driven business world, Bechtle's positive outlook can be significantly impacted by advancements in technology, as it seeks to strengthen its software business and maintain growth momentum.
- The financial health of Bechtle, a key player in the IT service industry, could benefit from strategic partnerships or investments in emerging technology, enabling the company to obtain a competitive edge in the ever-evolving digital finance landscape.
