Oddo BHF confirms its 'outperform' rating on Dassault Systèmes shares, with a price target lowered from 46 to 44 euros, after the company unexpectedly published preliminary Q2 2024 results yesterday morning that fell short of expectations (sales 4% below Css expectations with 4% cc growth).

The broker points out that this disappointment stems from delays in the signing of major PLM contracts, for a total of 40ME cc, and that the company was unable to compensate for these delays with other smaller contracts at the end of the quarter

Dassault Systèmes has revised its FY 2024 guidance: sales growth is expected to be between 6% and 8% cc (vs. 8% to 10% cc previously). Oddo BHF believes that 'the Group will play on the adjustable elements of its cost structure in order to protect its EPS, without cutting investments'.

In this context, the analyst revises its EBIT (non-IFRS) 2024-2025 by -3%, while its EPS revisions are 'limited for 2024 and -2% for 2025'.

'Good execution in H2 will enable a re-rating of the share', believes the research department.

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