- (PLX AI) - Is SimCorp a buy or a sell after yesterday's earnings? Danske and Nordea analysts take opposing views.
- • SimCorp shares fell yesterday after the company landed only 1 Dimension deal in Q4 and issuing 2022 guidance below consensus
- • This is a sign to continue to sell the stock, Nordea analysts said, maintaining a price target of DKK 500, for 20% implied downside
- • If one adjusts for the extra boost from client conversion with limited cash flow effect, last year's EBIT margin was closer to the lower end of SimCorp's guidance, Nordea said
- • But with the stock down nearly 30% in the last six months, the revaluation makes Danske turn more positive on SimCorp, upgrading it to buy from hold
- • Price target DKK 760, down from DKK 846 previously
- • Near-term earnings may come down, but won't have a major impact on long-term value, Danske said
- • Although conversions don't add new business, they do add value: Danske
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