FRANKFURT (dpa-AFX) – Uncertain business prospects have abruptly halted the recent surge in Bechtle shares. The IT service provider's stock plunged nearly eight percent to €38.68 by midday Friday, making it the worst performer in the MDax. At its lowest point, the share price had slumped almost ten percent. Meanwhile, the index of mid-cap stocks barely moved.
When presenting its fourth-quarter figures, Bechtle warned that the overall economic environment would likely remain challenging. Additionally, supply chain difficulties could have a negative impact this year.
The cautious outlook is a burden, wrote analyst Christopher Tong from Swiss banking giant UBS. Overall, Bechtle is sending a different message than its competitor Computacenter. The British company expects to overcome all challenges stemming from supply shortages.
The fourth quarter was strong for the IT service provider, Tong added. Martin Comtesse, an expert at the analysis firm Jefferies, emphasized that Bechtle closed out a difficult year with a record quarter. Comtesse sees this as a particularly positive trend for the first quarter.
In November, Bechtle shares had surged sharply in two jumps. First, unexpectedly strong quarterly results sent the stock soaring above €40, then investors reacted euphorically to rising business with the public sector. Since then, the shares had traded between €41 and €45, a range from which they broke downward on Friday.
With this price plunge, the chart outlook for Bechtle shares has deteriorated significantly. The stock dropped below the 200-day moving average, which many investors view as a benchmark for long-term performance./la/men/jha/
