Dassault Systèmes: Feedback from Apriso acquisition conference call
NEUTRAL, Fair Value EUR91 vs. EUR86 (-3%)
We reiterate our Neutral rating and increase our DCF-derived fair value to EUR91 from EUR86 on updated risk-free rate assumptions (3% vs. 3.3% = +EUR4) and a 1% upward revision to our 2014-15 adj. EPS assumptions (+EUR1) thanks to the acquisition of Apriso. While, at 4.1x 2012 sales, such a deal will be paid at a reasonable price, it is expected to have a minimal negative impact on the non-IFRS op. margin (less than 0.5ppt). On a strategic standpoint, we deem Apriso is a good move for Dassault Systèmes as it opens an addressable Global Manufacturing Operations management software market of USD1bn where there is a significant opportunity for legacy systems’ replacement.
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