HSBC upgrades Aveva ahead of Capital Markets Day

25th Jun 2021 17:30

(Sharecast News) - Analysts at HSBC upgraded their recommendation for shares Aveva ahead of the software maker's 1 July Capital Markets Day, its new chief executive officer's first.

They believed the affair could be "positive" for the share price.

But in order for that to happen, they said that the new CEO, Peter Herweck, who was joining from Schneider Electric, would need to "quell fears and boost growth".

The analysts were referring to investors' concerns that Schneider might "assert" its majority stake in Aveva.

On the outlook for growth, HSBC said it "assumed" that "considerable" revenue synergies were to be had with OSIsoft.

However, "it would be interesting to hear to what degree Aveva can drive the pace of digitalisation within its customer base."

Regarding the outgoing CEO, Craig Hayman, they noted how while had had grown the firm's sales and margins, to their eyes "underlying growth" had been slower than peers'.

HSBC also raised its target price on the stock, from 3,870.0p to 4,345.0p.