J.P. Morgan upgraded German software firm Nemetschek to “overweight” from “underweight,” raising its December 2027 price target to €110 from €90. The bank cites improved earnings forecasts and a reassessment of risks following a sharp share price decline. At the current share price of €75.15, the new target implies over 40% upside.

The upgrade follows a prolonged period of underperformance, with Nemetschek shares down about 45% from mid-2025 highs. J.P. Morgan noted the sell-off was driven by valuation de-rating, not earnings cuts, creating a disconnect between the stock’s price and its forecast earnings. The bank raised its 2026 adjusted EPS estimate to €2.68.

J.P. Morgan added Nemetschek to its Analyst Focus List, arguing the de-rating has left the stock trading below its long-term average premium to peers. The brokerage believes the balance of risk has shifted more positively, with further downside requiring a significant additional de-rating below recent historical lows.