Update shared on 14 Dec 2025
Fair value Decreased 4.78%Analysts have modestly raised their price target on SoftwareOne Holding to CHF 8.40 from CHF 7.40, citing stronger expected revenue growth and improving profit margins despite a slightly higher discount rate.
Analyst Commentary
Bullish analysts view the revised price target as a reflection of growing confidence in SoftwareOne Holding's ability to execute on its strategic priorities and sustain revenue expansion. The higher target indicates that, despite a slightly more cautious discount rate, the risk reward profile is seen as improving.
Bullish Takeaways
- The price target increase to CHF 8.40 signals that bullish analysts see upside potential relative to current trading levels, supported by improving fundamentals.
- Stronger projected revenue growth is viewed as evidence that SoftwareOne can deepen client penetration and expand its services mix, supporting a higher valuation multiple.
- Improving profit margins are interpreted as proof of better operating leverage and cost discipline, which could support sustained earnings growth over the medium term.
- Maintained coverage with a higher target suggests that, while near term expectations remain measured, execution on growth initiatives could unlock further rerating if performance continues to track ahead of prior assumptions.
What's in the News
- Reiterated 2025 revenue guidance, expecting flat constant-currency growth versus 2024 on a combined like-for-like basis (company guidance)
Valuation Changes
- Fair Value: reduced modestly from CHF 14.00 to approximately CHF 13.33 per share, reflecting a slightly more conservative intrinsic value estimate.
- Discount Rate: increased marginally from about 5.12% to roughly 5.20%, implying a small uptick in perceived risk or required return.
- Revenue Growth: raised slightly from around 29.66% to approximately 31.00%, signaling a modestly more optimistic outlook for top line expansion.
- Net Profit Margin: increased from about 14.20% to roughly 16.01%, indicating expectations for stronger profitability and operating leverage.
- Future P/E: fallen significantly from roughly 11.56x to about 6.74x, suggesting a materially lower valuation multiple on forward earnings assumptions.
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