LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity lowered their target price on IT services firm Redcentric from 185.0p to 175.0p on Wednesday, stating input costs had impacted the company's second half.
While Canaccord said Redcentric's first half was broadly flat in terms of sales and adjusted underlying earnings, in line with its expectations, the group's trading statement pointed to higher electricity costs to the tune of £500,000 for the second half, and at least the same again for 2023.

The Canadian bank also noted that the group's Wednesday trading statement also commented on a general lack of large-scale IT projects and supply chain issues surrounding equipment sourcing.

Despite the supply chain issues Canaccord remains confident in its top line estimates, with group recurring revenue around 90%, and reiterated its 'buy' rating on the stock.

However, the analysts did reduce their EBITDA/EBIT by the additional incremental cost of the electricity supply contracts, leading to the lower price target.

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