Kepler Cheuvreux upgrades Nemetschek stock, cites growth acceleration

Published 15/01/2025, 12:32
Kepler Cheuvreux upgrades Nemetschek stock, cites growth acceleration

On Wednesday, Nemetschek (NEM:GR) stock received an optimistic update from Kepler Cheuvreux, as the firm's analyst, Florian Treisch, elevated the stock's rating from Hold to Buy and increased the price target to EUR115.00, up from the previous target of EUR92.00. The upgrade reflects confidence in the company's potential for strong performance and growth in the coming year.

Nemetschek, a software developer for the architecture, engineering, and construction industries, is anticipated to close out 2024 at the upper end of its guidance range. The analyst’s commentary highlighted that despite a sluggish construction market, Nemetschek is expected to exhibit a growth acceleration in 2025, with revenue growth projected to rise to the mid-teens, following a low-teens growth in 2024.

The positive outlook is based on the belief that the construction industry is showing signs of improvement and that Nemetschek's subsidiary, Bluebeam, will continue its strong performance. The revised price target of EUR115 also factors in the extension of the valuation model to the year 2026 and the elimination of a 10% discount previously applied by the analyst.

The endorsement from Kepler Cheuvreux comes after a period of neutrality on the stock in recent quarters. The firm's renewed confidence in Nemetschek is backed by the potential for a "rare quality growth story" within the industry, which boasts several solid growth cases.

Nemetschek's strategic positioning and expected financial results position it favorably within the industry, according to Kepler Cheuvreux. The company's prospects, especially in light of positive developments in the underlying construction industry, have led to the more favorable outlook reflected in the stock's upgraded status.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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