Deutsche Bank announced on Tuesday that it had upgraded its recommendation on Dassault Systèmes shares from 'hold' to 'buy', underlining the French group's low valuation.

Despite the recent stock market rebound following Q3 results, the stock is still trading at a discount of around 20% to its highs at the end of 2021, it points out.

Its valuation is thus between 12% and 20% below its five-year averages in terms of PER 2024 and 2025, he adds, where its US rival PTC recently set new all-time highs.

With increasing adoption of the 3DExperience platform expected in the automotive sector, a turnaround in sight for Solidworks and a re-acceleration to be expected in the visual sciences by 2025, not to mention PMI activity indices moving at record lows, Deutsche believes it's a good time to be more positive on what it sees as a high-quality leader in the engineering software market.

Its price target has therefore been raised from €40 to €55.

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