Dassault Systèmes shares break through their €25.62 resistance and gain 2.5%

A breakout that places the stock well above its moving averages

Shares of Dassault Systèmes gain 2.76% to €25.67 late in the afternoon, while the CAC 40 rises 2.09%. The stock broke through its €25.62 resistance to the upside during the session and holds above it, with this level now acting as support.

The stock thus exceeds its highs of the last 30, 150 and 250 sessions (all three at the €25.62 level), which places it well above its 50-day moving average (€22.22), from which it has gained more than 15%.

The next round level is at €26. The performance is nearly 4% over the week and more than 24% over one month, after a sharp pullback last autumn.

Quarterly results above expectations and raised price targets

On 28 October, the group reported revenue of €1.55 billion for the third quarter, up 5% at constant exchange rates, with a non-IFRS operating margin of 31.6%. Analysts had expected €1.52 billion. Two brokerage firms then raised their price targets, which fed into the analysts' view on the stock.

Meanwhile, the company completed the acquisition of ArisGlobal for $1.8 billion. Over one year, the stock is still up 5.4%, after touching lows in the autumn.