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An excellent time to buy this digital transformer

Trading could continue to be subdued in the short term, and share price weakness offers investors an excellent buying opportunity
An excellent time to buy this digital transformerPublished on November 7, 2024

The Budget set out plans to improve public services through digital transformation. Projects include boosting NHS productivity via £2bn of investment in technology and modernising IT systems at HMRC. 

Tip style
Value
Risk rating
Medium
Timescale
Long Term
Bull points
  • Rising public sector demand 
  • Strong growth from Workday partnership
  • Valuation offers significant discount
  • Debt-free balance sheet
Bear points
  • Recent trading has been soft
  • Timing of recovery uncertain

This is good news for Kainos (KNOS), the FTSE 250 IT services provider. Almost a decade on from its IPO in 2015, Kainos has contracts with a host of government departments to deliver digital and data projects. If you have recently renewed your passport or booked a driving test online, you will have benefited from its expertise. 

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