Dassault Systèmes: Oddo BHF trims TP
(CercleFinance.com) - Oddo BHF confirms its 'outperform' rating on Dassault Systèmes shares, with a target price lowered from E46 to E44, after the company unexpectedly published preliminary Q2 2024 results yesterday morning that fell short of expectations (sales 4% below Css expectations with 4% cc growth).
The broker points out that this disappointment stems from delays in the signing of major PLM contracts, totaling E40m cc, and that the company was unable to compensate for these delays with other smaller contracts at the end of the quarter.
Dassault Systèmes has revised its FY 2024 guidance: sales growth is expected to be between 6% and 8% cc (vs. 8% to 10% cc previously). Oddo BHF believes that the Group will play on the adjustable elements of its cost structure in order to protect its EPS, without cutting investments.
In this context, the analyst revises its EBIT (non-IFRS) 2024-2025 by -3%, while its EPS revisions are 'limited for 2024 and -2% for 2025.
Good execution in H2 will enable a re-rating of the share, Oddo says.
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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 information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
The broker points out that this disappointment stems from delays in the signing of major PLM contracts, totaling E40m cc, and that the company was unable to compensate for these delays with other smaller contracts at the end of the quarter.
Dassault Systèmes has revised its FY 2024 guidance: sales growth is expected to be between 6% and 8% cc (vs. 8% to 10% cc previously). Oddo BHF believes that the Group will play on the adjustable elements of its cost structure in order to protect its EPS, without cutting investments.
In this context, the analyst revises its EBIT (non-IFRS) 2024-2025 by -3%, while its EPS revisions are 'limited for 2024 and -2% for 2025.
Good execution in H2 will enable a re-rating of the share, Oddo says.
Copyright (c) 2024 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.