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Investing.com - Goldman Sachs downgraded Dassault Systemes SE (OTC:DASTY) to Neutral from Buy on Wednesday and cut its price target to EUR20.00 from EUR29.00. The stock has declined 31% over the past six months and trades 51% below its 52-week high of $44.18.
The firm lowered its revenue growth forecast for the French software company to approximately 5% over the medium term for fiscal years 2026 through 2030, down from a prior estimate of 7%. This falls below Dassault Systemes’ current mid-term objective of 7% to 9% growth.
Goldman Sachs reduced its fiscal 2026 through 2030 revenue estimates by 2% to 7%, placing the firm’s projections 1% to 3% below Visible Alpha Consensus Data. The analyst cited ongoing end-market headwinds, execution challenges, and headwinds from the company’s life science business.
The firm said Dassault Systemes’ core industrial innovation business remains structurally intact and its 3DXPERIENCE product continues to differentiate the company in the product lifecycle management market. Goldman Sachs noted the company maintains a strong data moat around physical and scientific data and parametric models.
The firm said it expects Dassault Systemes to discuss potential opportunities to monetize its artificial intelligence capabilities at a command day in November.Despite near-term challenges, InvestingPro analysis suggests the stock appears undervalued at current levels. For deeper insights, investors can access a comprehensive Pro Research Report covering DASTY, one of 1,400+ reports transforming complex data into actionable intelligence.
In other recent news, Pascal Daloz has been appointed as the new chairman and CEO of Dassault Systèmes. This change follows Bernard Charlès’ decision to step down from his executive roles for personal reasons. The board of directors unanimously approved Daloz’s appointment, which was recommended by the Compensation and Nomination Committee. Additionally, Rothschild Redburn has initiated coverage on Dassault Systèmes with a Neutral rating, setting a price target of EUR27.00. The research firm noted Dassault’s strong asset portfolio and its leading global market share in manufacturing software, including mechanical computer-aided design and product lifecycle management solutions. These developments reflect key changes and evaluations for the company.
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