Dicker Data’s CFO accumulated a small parcel last week, following a 5.8% selloff on May 20 triggered by a year-to-date (January 1 to April 30) FY25 trading update. The update reported:
Gross sales up 17.4% to $1.11 billion.
Year-to-date gross margins slightly below full-year FY25 expectations, driven by a higher contribution from enterprise sales.
EBITDA in line with the prior period, impacted by lower gross margins.
Profit before tax broadly flat, up 0.3% year-on-year.
UBS analysts commented, “Our positive outlook on Dicker Data was driven by the PC refresh cycle supporting sales growth through CY25, but we underestimated the shift toward larger enterprise deals and their impact on gross margins.” Despite this, they view the stock as attractive, trading at 16x CY26 P/E (below its long-term average of ~18x), particularly given the current interest rate cycle. UBS retained a Buy rating but adjusted their target price upward from $9.30 to $10.20.
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