Dassault Systèmes: JPMorgan double upgrades stock

(CercleFinance.com) - On Monday JPMorgan upgraded Dassault Systèmes shares to "overweight", directly from "underweight" previously, raising its target price for them from E35 to E46, representing upside potential of around 20%.


In its comments, the broker says that it has re-examined the case: it considers the stock to be close to an inflection point with the return of "large contracts" at the designer of 3D design software.

The analyst therefore mentions the agreement that was recently signed with Jaguar Land Rover, which represents almost the same annual contribution as that signed with Boeing, in addition to partnerships sealed with General Motors and Apple.

JPMorgan also highlights the stock's clear underperformance YTD, with a gain of 13%, whilst on average its peers have increased by an average of 25%.

This observation leads the broker to consider the stock's valuation as attractive, with it currenty trading at a 2024 P/E of 28x, only about half of its historic peak of 55x, i.e. a discount of 10% compared to other peers.


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