Invest Securities reiterates its "buy" rating on Dassault Systèmes "for valuation reasons, considering the risk/reward favorable, especially from a medium- and long-term perspective," but lowers its price target from 42 to 32 euros.
"Following yesterday's -21% drop in the stock, Dassault Systèmes is now trading at valuation levels not seen since the 2007-08 crisis. The overly cautious 2026 guidance is fueling fears of disruption from AI," the analyst notes.
More than an impact from AI, the reasons for this slowdown are, in the analyst's view, cyclical (Auto and Healthcare sectors), compounded by a delayed acceleration in the shift to subscriptions, which will dampen growth for 2-3 years.
Acknowledging the uncertain short-term environment, the research firm has lowered its 2026-27 estimates for the enterprise software publisher, in order to align with management's cautious scenario and to account for a more adverse currency effect than previously expected.
Dassault Systèmes SE is the world leader in developing and marketing product life cycle management software. Net sales break down by family of products and services as follows:
- software (90.3%): product process optimization software and 3D design software for the following markets: general mechanical, automotive, aeronautics, consumer goods, electricity, and electronics, and factory design and naval construction. In addition, the group offers update and technical support services;
- services (9.7%): technological consulting and training services.
Net sales are distributed geographically as follows: France (15.9%), Germany (4.9%), Europe (10.8%), the United States (48.9%), Americas (1.2%), Japan (6.4%) and Asia (11.9%).
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