(News Bulletin 247) – Berenberg announced on Thursday that it had downgraded its recommendation on Dassault Systèmes, reduced from ‘buy’ to ‘hold’ with a price target reduced from 41.5 to 38.5 euros.
In a research note, the analyst explains that the first quarter results published by the French computer-aided design and manufacturing software group did not meet his expectations.
Berenberg said in particular that he was worried about weaker than expected license sales, which he said called into question the resilience of the company’s business model, as well as the scenario of a recovery in activity by the end of the year.
The intermediary also excludes any potential for improvement in terms of profitability due to the weakness of license sales, which generate high profit margins, and the sustained pace of hiring.
Pending new elements likely to support the stock, the professional downgrades his advice in the absence of any favorable catalyst on the horizon.
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