Dassault Systèmes: Stifel still a buyer
(CercleFinance.com) - Stifel reiterates its buy rating on the stock, with an unchanged target price of E40 (cp: E37.
5, +0.4%), after its 2024 results.
Dassault reported solid quarterly results in a difficult macroeconomic context, with sales up 1% and operating profit/EPS in line with expectations, the broker says.
The analyst believes that licenses enjoyed a strong rebound, with growth of 15%, thanks to major contracts signed in the aerospace & defense and home & lifestyle sectors, while subscription sales growth edged up to 7% (Q3: +5%).
Life Sciences growth remained anemic (stable; Medidata up 1%), while SolidWorks growth, another key indicator, improved to 8% (H1/Q3: +5%, Stifel adds.
Operating margin for Q4 was 36.3% (vs. consensus 36.4%), resulting in operating profit/EPS in line with forecasts. Q4 FCF was E244m, 4% above forecasts.
The group has announced its outlook for the 2025 financial year. It is targeting total sales growth of 6%-8% to reflect continuing macroeconomic uncertainty, an operating margin of 32.6%-32.9% (up 70bp-100bp), EPS of E1.36-E1.39 (up 7%-10%).
In this context, licenses should increase by 3 to 5%, while subscriptions should rise by 13 to 15%, Stifel estimates.
Copyright (c) 2025 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.
5, +0.4%), after its 2024 results.
Dassault reported solid quarterly results in a difficult macroeconomic context, with sales up 1% and operating profit/EPS in line with expectations, the broker says.
The analyst believes that licenses enjoyed a strong rebound, with growth of 15%, thanks to major contracts signed in the aerospace & defense and home & lifestyle sectors, while subscription sales growth edged up to 7% (Q3: +5%).
Life Sciences growth remained anemic (stable; Medidata up 1%), while SolidWorks growth, another key indicator, improved to 8% (H1/Q3: +5%, Stifel adds.
Operating margin for Q4 was 36.3% (vs. consensus 36.4%), resulting in operating profit/EPS in line with forecasts. Q4 FCF was E244m, 4% above forecasts.
The group has announced its outlook for the 2025 financial year. It is targeting total sales growth of 6%-8% to reflect continuing macroeconomic uncertainty, an operating margin of 32.6%-32.9% (up 70bp-100bp), EPS of E1.36-E1.39 (up 7%-10%).
In this context, licenses should increase by 3 to 5%, while subscriptions should rise by 13 to 15%, Stifel estimates.
Copyright (c) 2025 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.