DT’s Q4 report was broadly in line with expectations. After a challenging year, especially for the security segment, a gradual improvement is expected. Although it’s difficult to estimate the slope of the recovery, improvement is still ahead, and we see DT back on the road towards +10% growth and above 15% margins.
Based on the increased confidence in improving security demand coupled with DT’s potential for better growth and profitability metrics than our peer group, we raise our TP to 28.5 euros (prev. 26.5€) with BUY recommendation (prev. HOLD).