SRH AlsterResearch AG Update: Nemetschek SE - Started on a strong note into 2021; Rating down to HOLD

Nemetschek SE (Update) Technology MCap EUR 7.1bn HOLD, PT EUR 65.00 (+5% potential) Research_update Nemetschek’s better-than-forecast revenue and profitability performance in Q1 demonstrates that the company has successfully managed to enhance its market position albeit the various COVID-19-related challenges. Backed by a solid start to the year, the group has reiterated its 2021 targets, which are fully in line with our assumptions. Given the ongoing digitalisation in the sector and the released figures for the first quarter, we confirm our view on the investment case and the high-quality company, offering a ROCE of above 20% to investors. Nevertheless, we change our recommendation from BUY to HOLD after the recent strong performance of the stock. The DCF-derived price target remains unchanged at EUR 65.00 For 5 current investment ideas, check our Weekly Screener. This week we are looking for companies that have the highest Return on Capital Employed (ROCE) Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de