Jefferies upgrades Bytes Technology Group stock to Buy on temporary slowdown
Investing.com
Published Jul 16, 2025 01:56AM ET
Investing.com - Jefferies has upgraded Bytes Technology Group PLC (LON:BYIT) from Hold to Buy with a price target of GBP3.80.
The upgrade comes despite what Jefferies describes as an "undeniably weak" Annual General Meeting statement from the company.
Jefferies believes the current growth slowdown at Bytes Technology Group should be temporary, with the fundamental health of Microsoft—which accounts for approximately 50% of the company's gross profit—expected to underpin a future recovery.
The firm notes that Bytes Technology shares have fallen approximately 36% following 8-11% forecast downgrades, leaving the stock trading at what it considers an "ex-growth valuation."
This valuation shift has created what Jefferies views as "an attractive risk reward" profile for investors, prompting the rating upgrade to Buy.
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