Jefferies upgrades Bytes Technology, cites attractive risk/reward

(Sharecast News) - Jefferies upgraded Bytes Technology to 'buy' from 'hold' on Wednesday, citing an attractive risk/reward. It said that while the AGM statement was "undeniably weak", the growth slowdown should be temporary and that the fundamental health of Microsoft - around 50% of gross profit - should underpin a future recovery.

"Meanwhile, the shares have now fallen circa 36% off the back of 8-11% forecast downgrades, leaving the shares on an ex-growth valuation," Jefferies said.

"We think this creates an attractive risk reward, and, as a result we upgrade out rating to buy."

Jefferies has a 380p price target on the stock.

At 1050 BST, the shares were up 2.5% at 338.07p.