Discussions collapsing for a second time, tell us that there will not be a third chance. So Aveva is left to its own devices – and the structural weaknesses in the firm’s business model, as highlighted by this deal, remain unaddressed. Investors will have to put up with Aveva grinding it out. We downgrade our recommendation to Hold and an undisturbed target price. Yet expect Avevavshares to fall below this level as the ‘hot’ money moves on to pastures new.