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Investing.com - Kepler Cheuvreux upgraded Adesso SE (ETR:ADN1) from Hold to Buy and raised its price target to EUR110.00 from EUR102.00, citing an improved margin outlook that offsets near-term risks.
The upgrade follows a share price decline of over 30% since April, which Kepler Cheuvreux believes overstates current challenges while ignoring positive margin prospects for the IT services company.
The recent sell-off was attributed to weak first-quarter results, delays in public sector budgets, and reduced visibility on license income, according to the research firm’s analysis.
Kepler Cheuvreux noted that seven additional working days in the second half of 2025 could potentially increase license sales, while encouraging utilization trends support management’s confidence in meeting its full-year EBITDA guidance.
The firm also highlighted calendar advantages for 2026-27, with additional working days (+3/+1) in Germany providing further tailwinds for margin expansion at Adesso.
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