On Thursday, Jefferies maintained its Underperform rating on Dassault Systemes SE (DSY:FP) (OTC: DASTY (OTC:DASTY)), with a steady price target of EUR 27.00.
The firm's analysis suggests that despite investor interest in the company as a potential recovery play, concerns about cash flows persist. Jefferies pointed out that significant free cash flow (FCF) downgrades have left Dassault Systemes' shares with an expensive FCF yield.
The firm further noted that the current consensus on the company's FCF might be overly optimistic and could be subject to downward revisions.
"Until there is evidence DSY can deliver sufficient growth to justify its premium valuation, we remain cautious," the firm added.
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