Dassault Systèmes: Invest Securities no longer a buyer.
(CercleFinance.com) - In a report issued on Wednesday, Invest Securities downgraded its "buy" rating on the Dassault Systèmes stock to "neutral," trimming its target price from 88 euros to 86 euros.
"While the stock has performed well since the beginning of the year (+16% in absolute terms), the lack of potential relative to our target price (+3%) and demanding comparison bases for Q3 and Q4 (in terms of guidance and consensus), are leading us to downgrade - (temporarily?) - our rating," the broker summed up.
The latter still appreciates the group's fundamentals, although considers that the risk/reward ratio is now less favourable, "especially since any disappointment - even minimal - could be severely punished given the stock's demanding valuation (2017 -18e EV/EBITA of 19.1x-17.5x)".
The stock has also been removed from Invest Securities' best pick list.
Copyright (c) 2017 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.
"While the stock has performed well since the beginning of the year (+16% in absolute terms), the lack of potential relative to our target price (+3%) and demanding comparison bases for Q3 and Q4 (in terms of guidance and consensus), are leading us to downgrade - (temporarily?) - our rating," the broker summed up.
The latter still appreciates the group's fundamentals, although considers that the risk/reward ratio is now less favourable, "especially since any disappointment - even minimal - could be severely punished given the stock's demanding valuation (2017 -18e EV/EBITA of 19.1x-17.5x)".
The stock has also been removed from Invest Securities' best pick list.
Copyright (c) 2017 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.