Suse 'deserves premium rating' - Jefferies ups 'buy'

Suse SA

15/03/2022 11:12

** Jefferies upgrades software company Suse  SUSEG.DE  to
"buy" from "hold" seeing recent sell-off as a valuation
opportunity
    ** The broker says the Luxembourg-based firm deserves a
premium rating given its structural growth and a high quality
business model with a full subscription offering and high net
retention rate
    ** It points out SUSE's 100% subscription business saves
investors from the SaaS transition risks that are apparent
elsewhere across the European software sector
    ** Ahead of the first quarter's results, which Jefferies
expects to be "unsurprising," the broker forecasts Suse's
organic ACV (Annual Contract Value) to grow 14% for the
remainder of the year 
    ** Jefferies trims target price on the stock to EUR 31 from
EUR 36, still implying a 30% upside
    ** Out of seven analysts that cover Suse, five rate the
stock "strong buy" or "buy" and ​two rate it "hold" 
    
    

 (Reporting by Olga Beskrovnova)
 ((olga.beskrovnova@thomsonreuters.com))