For subscribers unfamiliar with DTL, a less heralded ASX tech stock, it's a value-added reseller of software and infrastructure products to government and enterprise customers in Australia. According to the company, it was Microsoft, Cisco and HP's no.1 reseller in Australia and a top-five reseller for Dell in sales terms in FY23.
DTL is a $1.1bn IT business, which has been trading around $7 for most of 2023, Morgans recently downgraded the IT solutions company to a hold with the same $7 price target. We believe the company will be a benefactor of increased IT spending in areas such as IT services and cloud networking infrastructure over the years ahead. The stock looks good value, trading on a PE of 26.6x for 2024, plus an estimated 3.6% yield, with its outlook helped by its defensive government contracts.
Data#3 (DTL) provides Information Technology solutions to business and government markets in Australia. These solutions integrate equipment and software from leading suppliers with Data#3's own design, management, installation and support services including procurement, recruitment and application services.
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