Berenberg initiates 'undiscovered high-growth story' 74Software at 'buy'

74Software SA

19/02/2026 07:46

** Berenberg initiates coverage on French enterprise software publisher 74Software 74SW.PA with a "buy" rating, citing it as an undiscovered high-growth story

** Broker sets a price target of 44 euros/shr, expecting operating free cash flow to grow 16% annually until 2028, driven by cost savings and cross-selling

** Berenberg says "investors have the chance to buy into a high EBIT/FCF growth story that is largely undiscovered", forecasting operating margins to nearly double by 2028

** Fears of disruption from AI appear "exaggerated" as the company's customer base, in public or regulated sectors with high security standards, will adopt AI slowly, giving the company time to optimise its own AI solutions and/or form partnerships with third parties

** The brokerage notes the firm is ready for M&A with up to EUR 140m in capacity, and could opt for share buybacks if no suitable targets are found in the short term

 (Reporting by Leo Marchandon in Gdansk)

 ((leo.marchandon@thomsonreuters.com))