(CercleFinance.com) – Stifel is downgrading its advice on Aveva from ‘buy’ to ‘hold’ with a price target lowered from 3,551 pence to 3,000 pence, believing that in the short term the price will depend on the flow of news regarding a potential offer of Schneider on the remaining shares.
“We believe that Aveva’s strategy of moving towards subscriptions and the cloud is the right one, but that there is significant uncertainty as to the pace of this business model transition”, judges the broker in its note on the British group.
According to him, the target of a 2026 EBIT margin of more than 35% seems optimistic given the mix effect of the faster growing cloud business with lower margins, as well as potential additional investments. in the cloud.
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