Aveva: Invest Securities adjusts target price
(CercleFinance.com) - Invest Securities upgraded its rating on the Aveva share to neutral (from sell) in its IT sector report on 14 April.
The broker believed that the share price had overreacted (-39% since 31/12) to fears regarding its main outlet, Oil & Gas (40% of sales).
The group's 2019/20 results (year to end-March), which include part of the slowdown, confirm the broker's scenario. However and even though the model's transition to subscriptions is a factor in the gradual improvement of visibility and profitability, near-term visibility remains limited on the group, especially relative to other sector players (NEMETSCHEK, DSY), Invest Securities says.
At this stage, the broker confirms its neutral rating on the share, with an adjusted target of 3,800p (versus 3,600p).
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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 broker believed that the share price had overreacted (-39% since 31/12) to fears regarding its main outlet, Oil & Gas (40% of sales).
The group's 2019/20 results (year to end-March), which include part of the slowdown, confirm the broker's scenario. However and even though the model's transition to subscriptions is a factor in the gradual improvement of visibility and profitability, near-term visibility remains limited on the group, especially relative to other sector players (NEMETSCHEK, DSY), Invest Securities says.
At this stage, the broker confirms its neutral rating on the share, with an adjusted target of 3,800p (versus 3,600p).
Copyright (c) 2020 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.