Jefferies Names Top European Mid-Cap IT Stocks After the Latest Update

Investing.com -- Jefferies has identified four mid-cap IT stocks positioned for significant growth, highlighting opportunities across semiconductor manufacturing, IT services, and photonics. The firm’s analysis emphasizes companies with strong operational leverage, record order backlogs, and exposure to artificial intelligence infrastructure demand.

The rankings reflect a combination of cyclical recovery potential and structural growth drivers, with particular focus on firms that have navigated recent industry headwinds while building competitive advantages in emerging technology markets.

Siltronic AG

Siltronic manufactures hyper-pure silicon wafers for semiconductor producers serving server, smartphone, automotive, and industrial markets. Jefferies expects wafer prices to rise 50-70% due to an approaching supply shortage, driving significant earnings upgrades.

The company guides for FY26 EBITDA margins between 20% and 24%, despite headline sales expected slightly below FY25 levels due to currency headwinds and small-diameter business closure. Jefferies highlights the firm’s technological leadership in 300mm wafers and structural demand from artificial intelligence and high-bandwidth memory. The shares trade at 6.1x EV/EBITDA for 2027 on Jefferies estimates.

Bechtle

Bechtle provides IT infrastructure and managed services to small and medium-sized enterprises and public-sector clients across Europe. Management raised FY26 guidance following a strong first half, now projecting business volume growth exceeding 10% and EBT growth of 5-10%. The company holds a record €3.5 billion order backlog as of June 30, 2026, up 10% since year-start.

Second-quarter business volume rose 18.1% with revenue growing 16.5%. The stock trades at 17.1x P/E for FY26, approximately 30% below its 10-year historical average of 23.8x, despite the recent guidance increase.

ams OSRAM

Ams OSRAM develops LEDs, lasers, and optical sensors for automotive, industrial, and consumer applications, with increasing focus on AI photonics and AR smart glasses. The company reported 13% year-over-year semiconductor growth in Q2 alongside over €1.6 billion of semiconductor design wins.

Jefferies sees material upside from microLED opportunities in AR smart glasses and AI optical connectivity, with potential device content worth €50-100 per unit. The price target of CHF25.5 corresponds to 7x FY27 EV/EBITDA and 1.2x EV/sales.

Computacenter

Computacenter provides technology sourcing and services to large corporate and public sector organizations across Europe and North America. The company reported FY25 adjusted diluted earnings per share growth of 9.5%, supported by gross invoiced income growth of 32% in constant currency.

Management expects FY26 adjusted PBT of no less than £380 million, significantly ahead of previous £341 million consensus. The firm holds a record committed product order backlog of £9.3 billion as of June 2026, up 323% year-over-year, driven by AI-related compute investments from hyperscaler customers.

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