FRANKFURT (dpa-AFX) - Following a positive commentary by Warburg Research, Cancom shares continued their recovery from Maundy Thursday on Tuesday. They rose as one of the favorites in the small cap index SDax by 4.5 percent to 28.88 euros. This confirmed the breakout above the 21-day line and the 200-day line on Thursday, the last trading day before the Easter break. The two average prices signal the short-term and long-term trend.

Warburg analyst Andreas Wolf still sees almost 40 percent upside to his price target of EUR 40 and confirmed his buy recommendation.

There are increasingly positive signals for the second half of the year, the expert wrote in a study. The outlook for the first six months of 2024 is rather gloomy compared to the second half of 2024, which could stand in the way of the IT service provider's share price in the short term. Nevertheless, the operating business development has probably bottomed out.

With a view to the second half of 2024, replacement purchases from customers are likely to be the driving force, according to analyst Wolf. In addition, the switch to Windows 11 should increase demand from companies for new IT infrastructure. And: in the wake of the growing importance of artificial intelligence, companies are likely to rely more heavily on on-site IT technology again - for security reasons - instead of transferring critical data to the cloud./mis/men