Bank of America Highlights Top European IT and Payments Stocks

Bank of America has identified its top equity picks in the European IT Services and Payments sector, reaffirming 'Buy' ratings across a portfolio of companies poised to benefit from digital transformation and payment innovation trends. The firm's analysis points to strong growth prospects for established IT consultancies, high-growth fintech platforms, and travel technology providers.

IT Services Beneficiaries

BofA highlighted several IT services firms it believes are well-positioned due to their roles in cloud, digital, and AI-driven projects across the public and private sectors.

• Capgemini: The firm reiterated its Buy rating, citing a strong second-quarter performance. BofA raised its fiscal 2026 organic growth forecast for the consultancy to 4.0% from 3.1% and maintained its price objective at €139. The bank noted Capgemini's attractive valuation, with a projected 2026 free cash flow yield of 9.7%.
• Netcompany: BofA raised its price objective to DKK 417 from DKK 415, implying a potential 33% upside. The bank sees a robust mid-term outlook for the company, forecasting an 8% organic revenue compound annual growth rate (CAGR) from 2026-2028, driven by its proprietary platform strategy.
• Computacenter: The price target was increased to 6,014 pence from 5,552 pence, reflecting a higher target multiple after peer stocks re-rated higher during the recent earnings season.

Payments and Fintech Leaders

The bank maintained a constructive view on payments and fintech companies that are gaining market share and capitalizing on the growth in digital and cross-border transactions.

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• Adyen: Following solid Q2 results, BofA raised its revenue forecasts for the payments platform, now projecting 20.9% growth in 2026. The firm anticipates a 20% revenue CAGR through 2028, supported by new merchant wins including OpenAI.
• Wise: The cross-border payments specialist earned a reiterated Buy rating, with BofA viewing it as a "structural beneficiary" in its market, underpinned by a scalable and modern technology infrastructure.
• Remitly: After the company beat Q2 expectations and raised its full-year guidance, BofA maintained its Buy rating. The bank projects strong 2026-2028 CAGRs for revenue (20%) and adjusted EBITDA (34%).

Travel Tech on the Rise

BofA also expressed confidence in select travel technology companies, expecting them to outperform as the market evolves.

• Sabre: The firm raised its price objective on the global distribution system provider to $2.60 from $2.30. BofA expects Sabre to materially outpace the industry, driven by the scaling of its New Distribution Capability (NDC) technology and an improving business mix.
• Hotelbeds (HBX): The bank reiterated its Buy rating, citing an "underappreciated business moat" and an expected reacceleration in growth in the fourth quarter and into fiscal 2027.