This report is an updated version of the report published on 07 August 2024 at 07:54 AM GMT+1.

Business Insights on 2 LSE-Listed Artificial Intelligence Stocks – Softcat & Kainos Group

Softcat PLC (LSE: SCT)

Section 1: Company Fundamentals

1.1 Company Overview and Performance summary

Company Overview:

Softcat PLC (LSE: SCT) is an FTSE 250 listed IT infrastructure provider catering to the corporate and public sectors, with world-class customer service. The Company has around 200 of the best vendors worldwide to provide customers with the best solution to meet their needs.

This Global Artificial Intelligence & Emerging Technologies Report covers the Company Overview & Price performance, Summary table, Key positives & negatives, Key metrics, Company details, technical guidance & Stock recommendation, and Price chart.

Price Performance:

• SCT's share price has given a negative return of 5.62% in the past one month. However, in the long term, the stock has gained by 4.75% over the past year.
• The stock is currently above the average of 52-week high of GBX 1,855.00 and 52-week low price of GBX 1,150.00, with the expectations of an upside movement from the current support levels of GBX 1,367.00 - GBX 1,423.00.

1.2 Summary Table

1.3 The Key Positives & Negatives

1.4 Key Metrics

Section 2: Softcat PLC (LSE: SCT) (“Buy” at the closing price of GBX 1,528.00, as of 06 August 2024)

2.1 Company Details

2.2 Technical Guidance and Stock Recommendation  

Kainos Group PLC (LSE: KNOS)

Section 3: Company Fundamentals

3.1 Company Overview and Performance summary

Company Overview:

Kainos Group PLC (LSE: KNOS) is an FTSE 250 listed technology company that is engaged in developing information technology for businesses and organisations. Company is headquartered in Ireland mainly operating with three business segments, namely, workday services, digital services, and workday products.

This Global Artificial Intelligence & Emerging Technologies Report covers the Company Overview & Price performance, Summary table, Key positives & negatives, Key metrics, Company details, technical guidance & Stock recommendation, and Price chart.

Price Performance:

• KNOS share price has given a negative return of 5.41% in the past one month. Moreover, in the long term, the stock has corrected by 20.47% over the past year.
• The stock is currently trading below the average of 52-week high price of GBX 1,344.00 and 52-week low price of GBX 900.50, with the expectations of an upside movement from the current support levels of GBX 901.00 - GBX 934.00.

3.2 Summary Table

3.3 The Key Positives & Negatives

3.4 Key Metrics

Section 4: Kainos Group PLC (LSE: KNOS) (“Buy” at the closing price of GBX 1,012.00, as of 06 August 2024)

4.1 Company Details

4.2 Technical Guidance and Stock Recommendation  

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 06 August 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5:  Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 6: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.