SRH AlsterResearch AG Update: S&T AG - S&T strengthens its multivendor services business; BUY

S&T AG (Update) Technology MCap EUR 1,354m BUY, PT EUR 31 (+51% potential) Research update Through a bolt-on acquisition from German peer Bechtle, S&T is strengthening its multivendor services business in Germany. Through this acquisition, S&T will add another 70 service technicians to its existing team of 330. With this, S&T is moving closer to its aim to achieve at least EUR 100m in sales in the German IT services business. Despite the small size, we view this transaction as positive as it allows S&T to grow in size and to reap overall synergies. A negative purchase price of c. EUR 1m additionally should be seen as a nice add-on – as well as the fact that Bechtle AG has been won as a new strategic partner allowing for additional revenue potential. We therefore reiterate to BUY, PT unchanged at EUR 31.00, offering an upside of c. 50% For 5 current investment ideas, check our Weekly Screener. This week we are looking for stocks that are resilient during inflation. Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de