(new: closing prices, commentary DZ Bank)

FRANKFURT (dpa-AFX) - Profitability concerns weighed heavily on the shares of the two MDax-listed software groups Teamviewer and Software AG in midweek. Software AG disappointed investors with its margin forecast. The U.S. bank JPMorgen also lowered its investment rating for Teamviewer.

Teamviewer closed 5.5 percent lower at 12.17 euros, while Software AG fared even worse, falling 14.7 percent to 21.80 euros. The shares were thus the weakest in the index of mid-cap stocks, which exited trading with a slight gain. In the moderately firmer Dax, the shares of software group SAP were not impressed by the negative industry news and gained 0.8 percent.

Analyst Armin Kremser of DZ Bank still believes that the time has not yet come to invest in Software AG shares. Due to the fact that investors have been disappointed again and again over many years, a significant valuation discount to the peer group is justified. Kremser lowered the fair value for the shares from 20 to 17 euros and maintained his "sell" rating. The outlook for 2023 is a bitter disappointment.

Software AG's forecasts for 2023 imply significantly lower market estimates for adjusted operating profit (Ebita), wrote JPMorgan analyst Toby Ogg. This is due to rising costs and strategic investments. The expert did not want to rule out the possibility that Software AG's news could weigh on the industry throughout Europe and specifically mentioned French Dassault Systems, which nevertheless remained unimpressed on Euronext with a gain of 0.6 percent, as well as German Teamviewer.

Ogg also downgraded Teamviewer from "Neutral" to "Underweight" and lowered the price target from 12 to 11 euros. Increasing investments of the company, which specializes in computer and machine remote maintenance, threaten to reduce profitability, the analyst wrote in a study published on Wednesday. Market expectations for the current year are too optimistic, he added. In addition, Ogg put the shares on a negative list in view of the company's upcoming financial results.

At Software AG, analyst Sven Merkt of U.K.-based investment bank Barclays called the operating profit outlook for 2023 weak. He said the midpoint of the range is 15 percent below consensus estimates - despite a restructuring program that is expected to deliver up to €35 million in savings in 2023. Merkt left its rating at "underweight." "Not convincing," was also how one trader described the Darmstadt-based company's outlook. The margin forecast is likely to weigh significantly on earnings and free cash flow expectations.

The price losses on Wednesday caused Software AG's shares to fall back to their lowest level since the beginning of November. At the same time, they tore through the chart-relevant 50- and 100-day lines for the medium-term trend. Teamviewer marked its lowest price since the end of November and also slipped below the 50-day line./ajx/mis/zb