CompuGroup falls as Stifel cuts it to 'hold' on low visibility for recovery

Nexus AG

28/11/2024 08:32

** Shares in German medical software company CompuGroup
 COP1n.DE  fall 2.2% after Stifel cuts it to "hold" from "buy"
citing recent operating struggles and limited visibility for
recovery
    ** This year's development was characterised by weakness in
the sale of software modules and sluggish software business, the
broker says
    ** "Q3 results did not provide any indication of a trend
reversal," it adds
    ** Order entry developed positively in the last two years,
but implementation is progressing only hesitantly, with low
visibility of two large digitalisation projects in Germany and
France, Stifel says
    ** A potential upside could come from improving operational
performance, or a potential takeover offer with a similar
multiple to the acquisition of peer Nexus  NXUG.DE , it says
    ** Out of 12 analysts covering the company, seven rate it
"strong buy" or "buy" and five "hold" - LSEG

 (Reporting by Isabel Demetz)
 ((Isabel.demetz@thomsonreuters.com))