Aveva: Invest Securities cuts target price
(CercleFinance.com) - Invest Securities reinstates its "buy" rating on Aveva shares, despite reducing its target price from 4,000 to 3,200 pence, due to a deterioration in the weighted average cost of capital (WACC) and lowered net asset value (-21.
5%/-22% over 2022-23 and 2023-24, and -5% beyond).
The broker believes that the new CEO's decision to accelerate the migration to SaaS and subscriptions, while penalising growth and profitability in the near term, does not call into question the group's targets for 2025-26.
Although patience will be required, the significant potential leads analysts to reiterate their buy rating on the stock, especially as good news is possible and not necessarily priced in (Schneider takeover, FX factors, recovery in the Oil & Gas sector), they add.
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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.
5%/-22% over 2022-23 and 2023-24, and -5% beyond).
The broker believes that the new CEO's decision to accelerate the migration to SaaS and subscriptions, while penalising growth and profitability in the near term, does not call into question the group's targets for 2025-26.
Although patience will be required, the significant potential leads analysts to reiterate their buy rating on the stock, especially as good news is possible and not necessarily priced in (Schneider takeover, FX factors, recovery in the Oil & Gas sector), they add.
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.