Investors seem puzzled by how Datawatch (DWCH) fits into Altair Engineering's (ALTR) core simulation software market, Berenberg analyst Gal Munda tells investors in a research note. Altair shares are down 16%, or $6.20, to $31.70 in afternoon trading following the company's acquisition of Datawatch. The analyst admits that his first take suggests there is very little overlap between Altair's core market both from technology and go-to-market opportunity. While the deal might appear odd from strategic perspective, Altair remains "one of the most exciting and highest-quality Design Software vendors," Munda writes. He believes that while the acquisition of Datawatch might not make Altair any stronger in its core market, its "does not dilute the company's fundamental value proposition." As such, he believes today's stock selloff "appears significantly overdone." Munda keeps a Buy rating on Altair with a $48 price target.