Aveva: Invest Securities raises target price
(CercleFinance.com) - Invest Securities has confirmed its neutral rating on the share of British IT company Aveva, although has raised its target price to 4,700p (versus 3,800p - current price just over 4,800 p).
Two years after the merger with Schneider's software business, Aveva has reached a new stage in its history with the announcement of the acquisition of OSIsoft for 5 billion dollars, the broker says.
The deal has an attractive strategic interest (complementary solutions, less exposure to the Oil & Gas sector, etc.), although will need to be clarified. However, the accretive impact relating to the deal is only limited (+3% before synergies, +8% after), with OSIsoft being acquired with a premium of +40% over Aveva's multiples, Invest Securities adds.
Pending the terms of the offer, the broker is not integrating this deal into its estimates.
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