IT resellers have made for resilient investments since the impact of coronavirus reverberated through the market, protected by heightened demand for hardware and software licences. This was reflected in Softcat’s (SCT) third-quarter update in May, when the company reported growth in revenue, gross profit and operating profit, with cash receipts in line with normal trends.
IC TIP:
Buy
at
1,261p
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points
Robust trading since the coronavirus outbreak
Migration to Windows 10
Rise in government spending could bolster public sector division
Bear points
Vulnerable to economic and fiscal movements
Recruitment may have been affected by coronavirus