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Investing.com -- Dassault Systèmes (EPA:DAST) on Friday said it has extended its mid-term financial targets to fiscal year 2029, setting a CAGR for earnings per share of 15% between 2025 and 2029.
The target was announced ahead of the company’s Capital Markets Day and represents a material increase from its historical EPS CAGR of about 9% over the past decade.
The updated target implies 2029 EPS of €2.4, compared with the current consensus of €2.01.
While this suggests theoretical upside, the extension of the target horizon to FY29 reduces the FY23–28 EPS CAGR from 15% to 12% over the FY23–29 period.
The FY25–29 CAGR remains at 15% based on the FY25 midpoint, in line with the newly stated trajectory.
From 2017 to 2025e, about 30% of Dassault Systèmes’ 11% EPS CAGR was attributed to a lower tax charge. Excluding the tax effect, the adjusted EPS CAGR would have been closer to 9%.
The company’s updated guidance indicates a gradual acceleration in revenue growth, implying that performance is expected to be back-end loaded toward the later years of the guidance window.
The company noted that capital allocation is expected to contribute to EPS growth, including an estimated €0.2 impact from mergers and acquisitions or share buybacks. No further detail was provided on the timing or scale of these contributions.
Jefferies has maintained its “underperform” rating on Dassault Systèmes, citing risk related to the back-end loaded structure of the updated targets and the company’s track record.
The brokerage’s price target is €28, implying a potential downside of 15% from the current share price of €32.75.