UBS downgraded Bytes Technology Group PLC to neutral from buy, cutting price target to 305p from 415p.
UBS cites rising cost pressures, potential reduction in Microsoft incentives, and AI‑driven IT budget shifts as key risks.
FY27 outlook shows flat EBIT, £4.5m extra costs, EBIT margin falling to 25% from 30.1% FY26.
UBS trims EBIT forecasts 3% FY26, 7‑8% FY27‑FY28, expects 8% gross profit growth and 1% EBIT growth FY27.