On Thursday, Citi adjusted its price target for Nemetschek (NEM:GR) shares, a global software provider, raising it to €105 from the previous €100, while reaffirming a Buy rating on the stock.
The firm anticipates Nemetschek to deliver second-quarter results on July 31 that align with expectations in terms of revenue and adjusted margins. The anticipated Annual Recurring Revenue (ARR) growth is around 24-25%.
The analyst from Citi expects Nemetschek's management to reiterate the company's outlook for its core business during the upcoming earnings report. Additional insights are also expected regarding the impact of the recent GoCanvas acquisition on the company's business targets.
Despite a sluggish macroeconomic environment and potential uncertainties arising from upcoming elections, the analyst believes these factors have been anticipated and factored into expectations.
Nemetschek's demand within the construction segment has shown mixed results, yet this was not unexpected. The company's high share of recurring revenue is seen as a safeguard against possible delays in closing deals. The analyst's commentary suggests confidence in Nemetschek's resilience and continued performance despite external challenges.
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