Aveva: Invest Securities cuts target price
(CercleFinance.com) - Invest Securities says that the deterioration in the group's organic performance has come at the wrong time, with Aveva expected to make a capital increase of 3.
5 billion dollars (one third of its current market capitalisation) in the coming days to finance the acquisition of OSIsoft for 5 billion dollars.
Management tried to reassure by announcing a significant rebound in H2, although has struggled to convince, even though some elements should play in its favour, Invest Securities believes.
Given this uncertain momentum regarding organic performance and a share price that is under pressure (-14% over 1 month), which will increase the number of shares related to the AK and reduce the acretive impact relating to OSIsoft, the broker is maintaining its neutral rating on the stock, with a reduced target price of 4,400p (vs. 4,500p) following reduction (-4% to -6%) in its EPS estimates for 2021/22 and 2022/23, Invest Securities adds.
The market seems pretty skeptical too - the share is down over 3.5% on Friday morning.
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