Analysts label Aveva deal 'transformational' as shares rocket

20th Jul 2015 12:34

(ShareCast News) - Analysts said Aveva's merger with Schneider was "transformational" as shares in the software firm rocketed.Shares were up 27.82% to 2,265p by 1140 BST after Aveva announced the reverse takeover deal.Investec labelled the deal "transformational" and lifted its recommendation from 'hold' to 'buy'.Analysts at Investec lifted its price target for the FTSE 250 stock from 1450p to 2600p.The deal comes at opportune time and has many merits, Investec said, as Aveva was suffering from its high exposure to oil and gas.Investec said the diverse base of the business and opportunity for cost savings addressed its previous concerns.Numis estimated the net effect of the deal would be £10 per share in cash. It had no rating on the stock as it is acting as sponsor and broker."In a single deal this brings Aveva capabilities in all the areas it has previously identified as strategically attractive - simulation software, a strong US presence, a much greater footprint with owner operators -covering we believe over 70% of plants globally- and market leading products in a wide range of industrial software," Numis said.Analysts at Numis said the deal creates a global leader in industrial software.