Dassault Systèmes: Oddo cuts target price
(CercleFinance.com) - Oddo believes that the direct impact of COVID-19 on Dassault Systèmes' business remains fairly limited.
China represents just 6% of sales and 12% of licenses on an annual basis, with a higher weight in Q1, the broker says.
Analysts detect upside in the short and medium term and therefore confirm their Buy rating on the share. After taking into account the increase in the risk premium (WACC of 8.9%, against 8.4% previously), they have cut their target price for the share to 160 euros.
DSY's sector exposure, which is very oriented towards industrial sectors, is not beneficial in the near term. However, the group benefits from several support factors which still suggest that the group will likely have a good year in 2020, Oddo adds.
Indeed, the competitive context and the need for digitalisation of industrial players remain favorable for DSY in the medium term.
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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.
China represents just 6% of sales and 12% of licenses on an annual basis, with a higher weight in Q1, the broker says.
Analysts detect upside in the short and medium term and therefore confirm their Buy rating on the share. After taking into account the increase in the risk premium (WACC of 8.9%, against 8.4% previously), they have cut their target price for the share to 160 euros.
DSY's sector exposure, which is very oriented towards industrial sectors, is not beneficial in the near term. However, the group benefits from several support factors which still suggest that the group will likely have a good year in 2020, Oddo adds.
Indeed, the competitive context and the need for digitalisation of industrial players remain favorable for DSY in the medium term.
Copyright (c) 2020 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.