Dassault Systèmes - Go Long After Temporary Headwind After Upcoming Q4 Results

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About: Dassault Systèmes SE (DASTY)
by: After-Market Analytics
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After-Market Analytics
Long/short equity, value, Growth, research analyst
Summary

Dassault Systèmes delivered strong performance so far + 39% YTD and considerably beating its benchmark index.

Recent Medidata acquisition is boosting its recurring revenue share to 85% by 2023 and promoting overall earnings visibility.

Smooth cloud transition with no short-term operating performance destruction.

Strong cash flow generation with a 80% cash conversion ratio is sustainable in the future.

Softer Q4 should bring currently high valuation levels down providing a short-term buying opportunity.

In line with the group's solid earnings development in the first 9M '19, Dassault Systèmes (OTC: OTCPK:DASTY; [ETR: DSY]) has delivered quite a strong performance with stock returning 39% YTD - way ahead