Aveva takeover unlikely any time soon, says JP Morgan


Aveva PLC (LON:AVV) is unlikely to be taken over any time soon, according to analysts at JP Morgan, who said that they believed the industrial software firm will “remain independent for the foreseeable future”.

In a note on Tuesday ahead of the company’s Capital Markets Day (CMD) on July 1, the broker, which rates AVEVA at ‘overweight’ with a price target of 4,300p, highlighted that the company’s chairman Philip Aiken has mentioned there is “no intention to change the current shareholder structure” and that the company “sees value in being an independent, hardware-agnostic software company”.

READ: Aveva worth buying after surprise CEO switch hits share price, says Barclays

Meanwhile, JP Morgan said they believed the company could “target long-term high-single-digit [revenue] growth”, noting stronger overall growth in the industrial software market, especially post COVID; OSIsoft coming into the mix with higher growth rates, delivering preCOVID growth of around 10% on average; and revenue synergies”.

The firm also added that in the short-term the CMD next month “could be a positive catalyst for the shares”.

Shares in Aveva rose 2.5% to 3,547p in lunchtime trading.


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