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Published
03 Jul 25
Updated
09 Sep 26
Views
83
Not Invested
SoftcatSCT
SCT logo
Fair Value
UK£15
Share price09 Sep
UK£18.9526.3% overvalued intrinsic discount
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1Y22.50%
7D2.05%

Tech Competition And Cloud Shifts Will Erode Margins

AN
AnalystLowTarget
AnalystLowTarget

Analyst Low Target compiles bearish analysts opinions to create narratives which represent one standard deviation below the consensus price target, using forecasted revenue and earnings figures, as well as the transcripts of earnings calls.

Published
03 Jul 25
Updated
09 Sep 26
Views
83
Not Invested
Fair ValueUK£15
Share priceUK£18.95
26.3% overvalued intrinsic discount
Narrative
Updates11

Shared on 09 Sep 26

Fair value Decreased 3.23%

SCT: Elevated P/E Will Continue To Mask Fragile Earnings Quality

Softcat’s outlook shifts slightly as analysts lower what they think the business is worth, even while keeping their sales and profit expectations broadly steady. With little fresh company news, the spotlight is on whether the market’s optimism is hiding how dependable future profits really are.
Read more
2 viewsusers have viewed this narrative update

Shared on 26 Aug 26

Fair value Increased 3.34%

SCT: Elevated P/E Will Continue To Mask Eroding Earnings Quality

The market’s optimism around Softcat may be hiding a drop in the business’s underlying profit strength, even as analysts nudge their view of what the company is worth. Find out what changed in the growth and profit assumptions that drive that estimate—and why the bar for performance may still be high.
Read more
3 viewsusers have viewed this narrative update

Shared on 10 Jul 26

Fair value Increased 11%

SCT: Higher P/E And Lower Margins Will Continue To Mask Weakening Earnings Quality

The market starts to assume Softcat grows again, even as expectations for its profitability slip and investors pay more for each pound of future earnings. That mix can make results look better on paper while the underlying quality of the business quietly weakens.
Read more
9 viewsusers have viewed this narrative update

Shared on 07 Jun 26

Fair value Increased 12%

SCT: Higher Interim Dividend Will Continue To Mask Weakening Earnings Quality

Softcat lifts its interim dividend, but the update flags that the business’s earnings may be getting less reliable beneath the surface. Analysts also raise what they think the shares are worth after tweaking their expectations for sales, profit, and what investors might be willing to pay for the company in future.
Read more
2 viewsusers have viewed this narrative update

Shared on 24 May 26

SCT: Rising Dividend Will Continue To Mask Weakening Earnings Quality

Softcat raises its interim dividend again, giving shareholders more cash back even as questions linger about how strong the underlying business really is. The latest analyst assumptions also lean on slightly better profitability and a lower return hurdle, which helps support the current view of what the shares are worth.
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4 viewsusers have viewed this narrative update

Shared on 02 May 26

SCT: Rich Dividend Payout Will Continue To Mask Weak Earnings Power

Analysts have raised their Softcat price target by £0.10 to reflect slightly higher assumed revenue growth and a marginally higher forward P/E. This is partly offset by a small reduction in expected profit margins and a modest increase in the discount rate.
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5 viewsusers have viewed this narrative update

Shared on 18 Apr 26

Fair value Decreased 17%

SCT: Softer Revenue Outlook Will Limit Appeal Of Dividend Returns

Analysts have reduced their Softcat price target from £14.50 to £12.10. This reflects updated views on softer revenue growth assumptions, a slightly higher discount rate, and a lower future P/E multiple, partly offset by a modestly improved profit margin outlook.
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2 viewsusers have viewed this narrative update

Shared on 20 Feb 26

SCT: Buybacks And Dividends Will Drive Attractive Future Return Profile

Analysts have kept their Softcat price target broadly unchanged at £14.50, citing relatively stable assumptions for the discount rate, revenue growth, profit margin and future P/E, which together point to a similar assessment of long term value. What's in the News Softcat began a share repurchase program on January 8, 2026, following approval at the December 15, 2025 AGM.
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7 viewsusers have viewed this narrative update

Shared on 06 Feb 26

SCT: Buybacks And Dividends Will Support Attractive Future Return Profile

Analysts have lifted their price target for Softcat to £14.50, reflecting slightly higher assumed revenue growth, a small improvement in profit margin, and a marginally lower discount rate, alongside a similar future P/E expectation. What's in the News Softcat began a share repurchase program on 8 January 2026, authorized to buy back up to 19,994,626 shares, with repurchased shares either cancelled or held in treasury (AGM resolution, 15 December 2025).
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8 viewsusers have viewed this narrative update

Shared on 23 Jan 26

SCT: Buybacks And Dividends Will Shape Future Fairly Valued Share Appeal

Analysts have nudged their price target on Softcat slightly higher to reflect modest adjustments to the discount rate, revenue growth assumptions, profit margin and future P/E expectations, indicating a marginally more constructive view on the company’s valuation drivers. What's in the News Softcat began a share repurchase program on January 8, 2026, following shareholder approval at the December 15, 2025 AGM.
Read more
1 viewusers have viewed this narrative update

Shared on 09 Jan 26

Fair value Increased 3.57%

SCT: Dividend Returns And Steady Outlook Will Shape Future Share Appeal

Analysts have raised their Softcat price target from £14.00 to £14.50, reflecting updated assumptions on discount rates, revenue growth, profit margins and future price-to-earnings (P/E) expectations. What's in the News Approval of a final dividend of 20.4 pence per ordinary share at the 15 December 2025 AGM.
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7 viewsusers have viewed this narrative update

Fair Value vs Share Price

UK£15
vs UK£18.9526.3% overvalued intrinsic discount
PastFuture02b2015201820212024202620272029Revenue UK£2.3bEarnings UK£216.5m
8.8%
Revenue growth
9.6%
Profit margin

Recent News & Updates

No updates

Recent updates

No updates

Stay ahead on Softcat

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Company analysis

Flawless balance sheet with solid track record and pays a dividend.

Market capUK£3.7b
PB13.0x
Estimated Growth6.9%
Dividend Yield2.4%
Full analysis

CEO & management

Graham Charlton
CEO
4.1yrs
CEO Tenure

Operates as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom.

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