Aveva: Jefferies downgrades stock

(CercleFinance.com) - Jefferies has downgraded its rating on Aveva shares from "hold" to "underperform", having slashed its corresponding target price from 3,300p to 2,000p, based on 2023-24 EPS estimates "pre-emptively" reduced by 15%-20% for the UK industrial software group.



The broker says that quarterly results show that Aveva will manage a more active SaaS transition, although it notes that "With a newly appointed CFO, there is no company guidance on the shape of a transition".

"A SaaS transition would ultimately be positive, but until the market digests the possible P&L impact, it is unlikely the shares can perform," Jefferies warns in its summary.

The share is currently down over 3% at 2,433 pence.



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