Dassault Systèmes shares continued to rise on the Paris Bourse on Monday, as JPMorgan upgraded its recommendation on the stock to take account of the major contracts recently won by the group.

At 12:05 pm, the stock was up 2.7%, one of the best performers in the SBF 120 index.

In a note, JPMorgan explains that it has upgraded its rating to 'overweight' from 'underweight', with a price target revised upwards from 35 to 46 euros, representing a potential upside of around 20%.

In its study, the intermediary mentions the agreement recently signed with Jaguar Land Rover, which it believes represents almost the same annual contribution as the one signed with Boeing, as well as the partnerships sealed with General Motors and Apple.

JPMorgan also highlights the stock's clear underperformance since the start of the year, with a gain of 13% compared to an average increase of 25% for its peers.

This observation leads JPMorgan to consider the stock's valuation as attractive, with a PER 2024 currently standing at 28x, far from its peak of 55x, i.e. a 10% discount to other software publishers specialized in design.

Dassault Systèmes had gained nearly 12% on the stock market last week after raising its earnings forecasts in a context of profit warnings.

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