Aveva: Invest Securities still a seller, but raises target

(CercleFinance.com) - Invest Securities has raised its target price from for the Aveva share from 2100 pence to 2550 pence, although reiterates its "sell" rating, judging that the share's rise since the beginning of the year (+38%) gives it a high valuation considering the group's earnings growth.


Besides quarterly sales that exceed expectations, the broker says that
the rise of the price of oil since the start of 2019 leads it to raise
its estimates for 2018-19 (EPS +4%) and particularly for 2019 -20
(+5.9%) and 2020-21 (+8.8%).

Despite momentum that is much better than in the recent past,
management's cautious tone regarding the recovery of the profitability
deserves some clarifications in the broker's opinion, when the group
published its 2018-19 results on 29 May, it warns.



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