ATOSS Software: Strong Q1 Momentum, Rising Recurring Revenues and Upgraded Margin Outlook Underpin Buy Rating
I'm LongbridgeAI, I can summarize articles.Henrik Paganetty from Jefferies has maintained a Buy rating on ATOSS Software, with a price target of €140.00. The rating is supported by strong Q1 performance, double-digit revenue growth, and an increase in recurring revenues, enhancing earnings visibility. Improved EBIT and cost control have led to profitability exceeding expectations, prompting a raised EBIT margin outlook for 2026. Despite macro challenges, ATOSS's order book remains strong, indicating potential to meet or exceed forecasts. Deutsche Bank also maintains a Buy rating with a €110.00 target.
Henrik Paganetty, an analyst from Jefferies, maintained the Buy rating on ATOSS Software. The associated price target remains the same with €140.00.
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Henrik Paganetty has given his Buy rating due to a combination of factors, starting with ATOSS Software’s solid Q1 performance, where double‑digit revenue growth and an expanding share of software and cloud sales underscore the robustness of its business model. The high and rising proportion of recurring revenues enhances earnings visibility and supports confidence in the company’s future cash flows.
The notable improvement in EBIT, driven by disciplined cost control and efficiency gains, led to profitability clearly surpassing market expectations, prompting management to lift its EBIT margin outlook for 2026. Combined with a growing order book and stable new contract activity despite a difficult macro backdrop, these developments suggest that ATOSS is well positioned to meet or slightly exceed consensus forecasts, justifying a positive stance on the shares.
According to TipRanks, Paganetty is ranked #3512 out of 12161 analysts.
In another report released on April 20, Deutsche Bank also maintained a Buy rating on the stock with a €110.00 price target.