Software AG: Bryan Garnier still a buyer; adjusts target
(CercleFinance.com) - Bryan Garnier has reinstated its "buy" recommendation on Software AG and has raised its fair value for the share from 49 euros to 51 euros, the day after a meeting organised by the German software publisher.
The broker has upped its organic sales growth assumptions for the period 2021-2028 from +3% to +5% (+4 euro impact on fair value), although has cut its adjusted EPS estimates by 2%-4% over the period 2018-2020 (-2 euros impact on fair value).
"We deem the IoT/Cloud business model will secure a growth acceleration, but the sales mix will provide a bit more uncertainty for the margin," the broker explained.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker has upped its organic sales growth assumptions for the period 2021-2028 from +3% to +5% (+4 euro impact on fair value), although has cut its adjusted EPS estimates by 2%-4% over the period 2018-2020 (-2 euros impact on fair value).
"We deem the IoT/Cloud business model will secure a growth acceleration, but the sales mix will provide a bit more uncertainty for the margin," the broker explained.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.