AlsterResearch Update: Bechtle - Growing in a difficult environment

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What’s it all about?

Bechtle AG has developed successfully in the first nine months despite the still difficult general conditions. Revenues, earnings, and margins were in line with our estimates and also fit in our full year expectations. Bechtle’s management confirmed the annual forecast with significant revenue growth, a very significant increase in earnings, and an EBT margin above the previous year. Taking EBT margin above previous year into account and significant growth (which means above 10% for Bechtle), an EBT of above EUR 320m in 2021 (EUR 321 eAR) seems achievable. Hence, we assume higher profitability and raise our estimates respectively. We increase our DCF-based price target to EUR 69.00 (EUR 67.00) but downgrade our recommendation to HOLD (from BUY), after the strong share price performance of the last weeks.