Schneider: Société Générale still a buyer after Aveva.
(CercleFinance.com) - Société Générale (SG) this morning confirmed its buy rating on Schneider Electric shares, which - at last - yesterday announced its merger with the British group Aveva.
SG also maintains its 12-month target price of 80 euros.
According to analysts, “the Aveva deal, announced yesterday, makes Schneider the best positioned OEM in process software, covering the entire value chain, from design to O&M (similar to Siemens in discrete industries).”
The transaction will also "crystallise" the value of Schneider's software division, which will be contributed to the "new Aveva," and will therefore be valued separately from the rest of Schneider, bearing in mind that the French group will control the capital of Aveva.
Moreover, the acquisition “could also ease investor concerns around large M&A from Schneider,” which SG adds could upset it.
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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.
SG also maintains its 12-month target price of 80 euros.
According to analysts, “the Aveva deal, announced yesterday, makes Schneider the best positioned OEM in process software, covering the entire value chain, from design to O&M (similar to Siemens in discrete industries).”
The transaction will also "crystallise" the value of Schneider's software division, which will be contributed to the "new Aveva," and will therefore be valued separately from the rest of Schneider, bearing in mind that the French group will control the capital of Aveva.
Moreover, the acquisition “could also ease investor concerns around large M&A from Schneider,” which SG adds could upset it.
Copyright (c) 2017 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.