Data#3 shares rally as UBS upgrades to 'buy'
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The news: Data#3 shares jumped in early trading after UBS upgraded its rating on the IT services and solutions provider to 'buy'.
The numbers: Data#3 shares were up 7.3% to $7.42 at 10:30am AEST. It tracked a 7.6% surge across tech stocks as the market soared.
UBS upgraded its rating on the stock from 'neutral' to 'buy' and kept its price target at $8.10.
The context: UBS analysts noted that Data#3 shares have fallen around 13% since its first-half results in February, despite the company having no direct exposure to US tariffs.
They said the company is a quality business with a track record of growth and industry outperformance. Its exposure to government, which makes up 55% of revenue, and a high degree of recurring revenue via long-term software contracts means that revenue should be "relatively defensive", the analysts noted.
The source: UBS research
