Deutsche Bank has raised its recommendation on Nemetschek SE to a buy rating, even as it trimmed the one-year price objective to €85 from €100. The lender said it believes the market is undervaluing Nemetschek's ability to monetise emerging agentic AI capabilities and flagged continued sector-wide uncertainty as the reason for lowering the target.
In its assessment, Deutsche Bank noted that sentiment toward Nemetschek has been particularly weak, with shares down by more than 50% from their previous highs. The bank said this drop may overstate downside given the company's positioning in the evolving AI landscape.
Deutsche Bank acknowledged that broader doubts about the long-term impact of AI on software growth profiles continue to weigh on technology stocks. Nonetheless, the bank said it expects capital to rotate toward companies that can demonstrate defensible competitive advantages, visible growth trajectories and plausible routes to monetising AI — characteristics it believes Nemetschek possesses.
The research team pointed to strengthening confidence in the core business and product ecosystem as evidence of the company's improved profile. A specific focus in Deutsche Bank's analysis was Bluebeam Max, where the bank's modelling indicates that upselling roughly 10% of current paid users could add an incremental revenue contribution in the range of about 2% to 6%, depending on the scenario applied.
Despite cutting the target price, Deutsche Bank said Nemetschek's valuation looks attractive versus peers, and that relative valuation supports the upgrade to buy.
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Deutsche Bank's most recent stance underscores the tension in software equities between short-term uncertainty about AI's structural effects and investor interest in companies with clear monetisation pathways. Nemetschek's Bluebeam Max upsell opportunity and the bank's view on relative valuation were central to the decision to upgrade the stock.