Positive data from both NetApp and Dell reports

Hardware market to rebound in 2024e

Well positioned to regain growth from AI and cybersecurity. Adj. EBITA +1-3%, EPS +2-4% from completed buybacks. Share at 7.5x 2024e EV/EBITA, 30% below peers.

Q4 better across the board

Data storage starting to see some AI demand

Tough comps in Q4e but tailwinds into 2024e. Cost reductions to yield margin expansion ahead. Share at 7.1x 2024e EV/EBITA, -37% vs . IT re-seller peers.

Two positive news to highlight

Margin resiliency and strong cash flow

An in line report on adj. EBITA and -8% org growth (ABGSCe -7%). Cost reductions bear fruit, adj. EBITA +2% in 2023e-'25e. Estimates hold up well at 6.9x 2023e EV/adj. EBITA and 5.6x in '24e.

Cost reductions yield an in-line adj. EBITA

Protecting bottom line in a slowing market

Sales -1-2% as we estimate neg . organic growth in Q3-Q4e. Cost reduction programme makes us raise adj. EBITA +0-2%. Share trading at 7.1x 2023e EV/adj. EBITA.

Growth is slowing but costs are addressed

Cost miss in Q1

Good top-line but worse margin in Q1. We now estimate adj. EBITA to decline -7% in 2023e.

A set-back in the margin journey