Jefferies analyst Charles Brennan maintained a Sell rating on Dassault Systemes today and set a price target of €24.00.
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Charles Brennan has given his Sell rating due to a combination of factors that suggest potential challenges for Dassault Systemes in the upcoming quarters. While the third quarter guidance indicates low growth, it is based on a relatively easy comparison from the previous year. However, Brennan expresses concern that the results from the third quarter may not sufficiently mitigate the risks anticipated in the fourth quarter, which is expected to be particularly challenging due to difficult comparisons with past performance.
Furthermore, Brennan highlights ongoing risks in forecasts and pressures on the quality of earnings, suggesting that these factors could impact the company’s financial health. He believes that there are more attractive investment opportunities available within the sector, leading to a decision to lower the price target to €24. This assessment reflects a cautious outlook on Dassault Systemes’ ability to navigate the upcoming financial hurdles effectively.