Dassault Systemes, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Charles Brennan from Jefferies maintained a Sell rating on the stock and has a €27.00 price target.
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Charles Brennan has given his Sell rating due to a combination of factors that highlight concerns about Dassault Systemes’ financial performance. Although the company met its second-quarter revenue expectations, other key financial metrics such as margins, share-based compensation, and cash flow were found lacking. Brennan notes that while the revenue growth was slightly above consensus, it was not substantial enough to be considered a success, especially given the nature of the growth.
Additionally, the company’s guidance remains largely unchanged, yet it demands a notable improvement in the fourth quarter amidst challenging comparisons. Brennan expresses skepticism about the company’s ability to mitigate risks for the fiscal year, and he finds it difficult to justify the stock’s premium valuation under these circumstances.
According to TipRanks, Brennan is a 5-star analyst with an average return of 11.1% and a 64.44% success rate. Brennan covers the Technology sector, focusing on stocks such as Dassault Systemes, SAP SE, and GB Group plc.