Dassault Systèmes: Oddo adjusts target price
(CercleFinance.com) - Oddo maintains its Outperform rating on Dassault Systèmes shares, although has trimming its target price for them from 52 euros to 50 euros.
The analyst notes that short-term trends are broadly unchanged, saying that China should remain sluggish, while demand remains solid elsewhere. He notes that sales cycles do not seem to be lengthening, including on large, well-qualified deals.
For the analyst, the sales momentum is driven by the migration to 3DExperience and not by new customer contracts. The development of the company's Digital Twin facilitates the optimisation of production and supply chain management. Meanwhile, the automotive sector will have to accelerate if it wants to meet the challenge of the electric vehicle.
While highly confident regarding H2, the analyst is reducing his forecasts for licence growth towards the lower end of the guidance range to take into account the risk of volatility on certain signatures in the face of the deteriorating macro context and the gradual recovery in China.
However, at the bottom line, the strategic nature of DSY's products and its pricing power offer sound visibility for H2 2022 and 2023.
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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.
The analyst notes that short-term trends are broadly unchanged, saying that China should remain sluggish, while demand remains solid elsewhere. He notes that sales cycles do not seem to be lengthening, including on large, well-qualified deals.
For the analyst, the sales momentum is driven by the migration to 3DExperience and not by new customer contracts. The development of the company's Digital Twin facilitates the optimisation of production and supply chain management. Meanwhile, the automotive sector will have to accelerate if it wants to meet the challenge of the electric vehicle.
While highly confident regarding H2, the analyst is reducing his forecasts for licence growth towards the lower end of the guidance range to take into account the risk of volatility on certain signatures in the face of the deteriorating macro context and the gradual recovery in China.
However, at the bottom line, the strategic nature of DSY's products and its pricing power offer sound visibility for H2 2022 and 2023.
Copyright (c) 2022 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.