Pedchenko Vesna

Vesna Pedchenko

Analyst advised to sell Dassault Systems shares / Photo: JHVEPhoto / Shutterstock.com

Analyst advised to sell Dassault Systems shares / Photo: JHVEPhoto / Shutterstock.com

Trading in shares of Dassault Systèmes, a French developer of software for the use of 3D-technologies, was briefly suspended on Monday, February 16, due to a sharp drop in the company's quotes. They collapsed by 7.8%, after the broker AlphaValue worsened the rating of Dassault Systèmes by two steps at once: he refused to recommend buying its securities and advised to sell, writes CNBC.

AlphaValue cited renewed concerns about whether the French company can monetize its AI implementation, as well as "an alarming loss of momentum." The broker said it expects the company to grow only 3-5% this year, Investing.com reported . It also announced the end of the so-called Dassault Systèmes exemption, the company's traditionally more premium growth profile compared to its peers. According to AlphaValue, that status is no longer justified given the weak outlook.

Over the last five trading sessions Dassault Systèmes has lost more than a quarter of its market capitalization, and since the beginning of the year the value has decreased by 30%. The quotations are under pressure from the global soft-acopalypse - a sell-off in the shares of software developers around the world due to the threat posed to their business by the development of tools based on artificial intelligence.

This article was AI-translated and verified by a human editor

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