Up 40% this year, does Macquarie still rate Data#3 shares a buy?

Data#3 Limited (ASX: DTL) shares have dropped more than 6% today following yesterday's Annual General Meeting (AGM).

Despite this fall, Data#3 shares remain up more than 40% in 2025. 

The company is an information technology services and solutions provider. Its technology solutions are broadly categorised into cloud, workplace, security, data and analytics, and connectivity.

The company also provides consulting, procurement, project services, managed services, and resourcing solutions.

Should investors jump on board following today's dip?

Here's what the team at Macquarie think. 

Neutral valuation 

The team at Macquarie has lowered its rating to neutral on Data#3 shares. 

Macquarie says Data#3's strong first-half profit guidance and growth in Infrastructure Solutions justify the recent share price rise, though any upside for FY26 is likely already priced in. 

A rebound in the second half is needed to meet forecasts, but subdued SME spending poses risks despite the company's solid cash position.

Despite the neutral rating, it has upgraded its price target to $9.85 (from $9.15).

The team said in today's report that it values the stock at 29.5x P/E, which is in line with what is implied by its 10-year average P/E relative to the S&P/ASX 300 Index (ASX: XKO) (1.55x). 

Whilst this screens expensive, Data#3's net cash balance sheet & capital-light market share growth justify a premium.

Macquarie said the market is now expecting a 2H rebound, but SME IT remains subdued. It views risk/reward symmetry as balanced for Data#3 shares.

We make minor earnings changes (FY26E: 0.2%), adjusting our forecasts to reflect a greater 2H PBT skew (1H: 45%, 2H: 55%). Our (+1%) FY27E & FY28E changes reflect slight improvements in Infra Solutions spend.

Upside following today's fall

At the time of writing, Data#3 shares are trading for approximately $8.90 each. 

This is more than a 6% drop from yesterday's closing price.

Despite Macquarie's neutral rating, there is some upside based on today's reduced share price. 

If Data#3 shares hit Macquarie's target, it would be a 10.67% rise from current levels.

Elsewhere, TradingView sees the stock as trading close to fair value, with a $9.11 price target. This indicates roughly 3% upside from today's price.

Online brokerage platform Selfwealth lists the stock as "trading close to fair value."