J.P. Morgan initiated coverage of Bytes Technology Group at Underweight and Bechtle at neutral, while reiterating Computacenter as its most preferred European value-added-reseller stock. The broker set a December 2027 price target of 375 pence for Bytes, implying about 10% downside, citing limited AI infrastructure exposure, vendor incentive risks and weaker near-term gross-profit opportunities. Changes to Microsoft’s incentive structures prioritize net new seat growth and greater usage within existing seats over renewals, potentially pressuring Bytes’ channel economics. J.P. Morgan forecasts Bytes’ gross profit and operating profit about 2% below consensus through fiscal 2027-2029. It set a December 2027 target of €38 for Bechtle, implying modest upside, but does not expect a major increase to the company’s financial targets at its September Capital Markets Day. Bechtle’s shares have fallen 17% year-to-date, while Computacenter, Softcat and Bytes have gained 82%, 43% and 16%, respectively.