ATOSS Software: Solid Sales Growth and Cloud Expansion, but Limited Margin Expansion Justifies Hold Rating

Jefferies analyst Henrik Paganetty maintained a Hold rating on ATOSS Software (0N66 – Research Report) today and set a price target of €108.00.

Henrik Paganetty has given his Hold rating due to a combination of factors related to ATOSS Software’s recent financial performance and market expectations. The company reported a solid increase in Q1 2025 sales, rising by 11% to €46.3 million, which closely aligns with market forecasts. Software sales, particularly in the cloud segment, showed significant growth, contributing to a substantial portion of the total revenue and enhancing future revenue visibility.
Despite these positive results, the company’s EBIT margin remained steady at 34%, which, although slightly above consensus expectations, suggests limited margin expansion. Additionally, while the demand for workforce management software has improved compared to the previous year, the company faces tougher comparisons in the upcoming quarters. These factors combined lead to a cautious outlook, justifying the Hold rating as the company meets but does not significantly exceed market expectations.