Dassault Systemes downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs downgraded Dassault Systemes (DASTY) to Neutral from Buy with a price target of EUR 20, down from EUR 29. While the firm still continues to believe that Dassault’s core industrial innovation business is structurally intact, it sees limited near-term visibility around revenue growth reacceleration given ongoing end-market headwinds, and the company working through execution challenges, the analyst tells investors in a research note. As a result, the firm believes it becomes difficult to underwrite a compelling Buy case at the current valuation and cadence of revenue growth both in absolute terms and vs. the firm’s European software coverage.