While maintaining its 'neutral' recommendation on Dassault Systèmes shares, UBS has lowered its target price from €33 to €28.25, a new target that leaves 11% upside potential for the French enterprise software publisher's stock.
The low visibility on Medidata and its ongoing growth challenges weigh heavily, while the Industrial Software business is undergoing an unpredictable transition in its business model, the broker said after last week's quarterly results.
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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