Compugroup shares surge on Morgan Stanley upgrade to "overweight"

CompuGroup Medical SE & Co KgaA

04/04/2024 11:19

** Shares in Compugroup  COP1n.DE  jump ~7% after Morgan
Stanley raises the German medical software company to
"overweight" from "equal weight" 
    ** Stock on pace for best day since July 2021
    ** MS says stock underperformed in past six months after its
financial performance but "we think the de-grading has gone too
far given solid growth and margin expansion" 
    ** MS sees a "rare opportunity" to acquire a software
company at a low valuation since the stock is trading at a steep
discount to European software firms it covers
    ** MS expects the company to benefit from high customer
stickiness, high visibility and healthy margins

 (Eva Orsolya Papp)
 ((evaorsolya.papp@thomsonreuters.com))