Analyst Charles Brennan of Jefferies reiterated a Sell rating on Dassault Systemes (0HB4 – Research Report), retaining the price target of €31.00.
Charles Brennan has given his Sell rating due to a combination of factors that highlight a less favorable business model for Dassault Systemes compared to its peers. He believes that the company’s contract structures are not as advantageous, which will become evident in the first quarter of 2025 results. Despite having one of the highest valuations in the sector, the guidance indicates that Dassault Systemes will report one of the lowest growth rates.
Additionally, Brennan points out that macroeconomic volatility is unlikely to aid in achieving strong quarter-end signings. This combination of high valuation and low growth prospects, along with external economic challenges, supports his decision to maintain a price target of €31 and an Underperform rating for the stock.