DSY FP

Dassault Systemes SA

TMT


Presented:06/24/2019
Price:€138.90
Cap:$40.04B
Current Price:€32.88
Cap:$48.10B

Presented

Date06/24/2019
Price€138.90
Market Cap$40.04B
Ent Value$36.47B
P/E Ratio60.58x
Book Value€18.76
Div Yield0.47%
Shares O/S258.80M
Ave Daily Vol282,088
Short IntN/A

Current

Price€32.88
Market Cap$48.10B
Dassault Systèmes SA provides software solutions and consulting services. It offers end-to-end software applications and services which span design from early three-dimensional digital conceptual design drawings to full digital mock-up, from virtual testing of products and virtual production to manufacturing operations management and from digital marketing and sales to end-consumer shopping experience. The company was founded by Charles Edelstenne on June 9, 1981 and is headquartered in Vélizy-Villacoublay, France.

Publicly traded companies mentioned herein: Dassault Systemes SE (DSY FP), Medidata Solutions Inc (MDSO), PTC Inc (PTC), Veeva Systems Inc (VEEV)

Highlights

The presenter is short shares of Dassault Systemes (DSY FP; “DSY”) due to its presently extended valuation (40x Street 2019 EPS expectations) and risks surrounding Medidata (a $5.8B EV deal announced on June 12). At ~€139 per share, the risk/reward setup and entry point are attractive for the short, as upside should be limited to 5% - 10%, and in the event of a recession, the stock could decline by 30% - 40%. In the meantime, the proxy for the Medidata deal could be a negative catalyst if DSY’s management team is more conservative with guidance. 

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Idea Discussion

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