Broker tips: Computacenter, Sainsbury's
By Iain Gilbert
Date: Tuesday 27 Oct 2026
(Sharecast News) - Berenberg lifted its price target on Computacenter on Tuesday following the company's trading update a day earlier, in which it lifted its full-year guidance.
"Primarily driven by excellent performance in its Technology Sourcing division in North America and the UK, the company now expects FY26 adjusted profit before tax to be over £425m (10% ahead of the prior £386m consensus expectation)," the bank noted. "With Q4 being Computacenter's largest quarter, the company could still materially beat this upgraded guidance, in our view."
In addition, Berenberg said that with £3.3bn added to its committed backlog in the third quarter, Computacenter already has good visibility over its FY27 performance.
The German bank, which maintained its 'buy' rating on the stock, lifted its FY26, FY27 and FY28 forecasts for adjusted pre-tax profit by 10%, 7% and 7% respectively and its price target to 6,750p from 6,500p.
Deutsche Bank downgraded Sainsbury's on Tuesday to 'hold' from 'buy' and cut the price target to 365p from 390p as it said there was less upside into peak trading.
The bank said its previous 'buy' thesis centred on sustained grocery volume outperformance, scaling margin drivers and scope for the valuation discount to Tesco to narrow post Argos.
"Following H1 results we have less conviction on volume outperformance, while weaker sales leave greater reliance on margin and cost levers to deliver earnings," it said. "The business remains in good shape: pricing is competitive, customer satisfaction healthy and availability strong at circa 98%. However, a softer volume outlook, limited near-term margin progression and a fuller valuation leave risk/reward less attractive into peak trading."
DB cut its H2 LFL growth forecast from 3.6% to 1.8%, while its FY27 EBIT estimate was unchanged at £1,052m.
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