Deutsche Bank has initiated coverage on Mensch und Maschine Software SE (ETR:MUMG) with a “buy” rating, setting a price target of €60.
Shares of the German software company was up 1.4% at 08:15 ET (12:15 GMT).
Analyst Nicolas Herms said the company, a leading European Autodesk partner, stands out in providing software and digitization services to the architecture, engineering and construction (AEC) as well as manufacturing industries.
The bank noted that a shift in Autodesk’s go-to-market model has altered Mensch und Maschine’s revenue structure, creating temporary distortions in the company’s fiscal 2025 financials. Despite this, Herms pointed out that the underlying business remains strong.
According to Deutsche Bank, the transition year offers an attractive entry point for investors, with shares currently trading at about a 27% discount to the company’s 10-year EV/EBIT multiple.
“We see this transition year as an attractive entry point, with MuM trading at a ~27% discount to its 10-year EV/EBIT multiple,” Herms said in the note.
Deutsche Bank expects Mensch und Maschine to resume a normal growth path in 2026 and 2027, driven by reaccelerating expansion and margin improvement.
This trajectory is projected to support robust earnings per share growth and a potential rerating of the stock toward historical valuation levels.
At a target price of €60, Deutsche Bank sees a roughly 28% upside from current levels.
Source :
https://www.investing.com/news/stock-market-news/mensch-und-maschine-rated-buy-at-db-as-revenue-model-shift-creates-entry-4233333
