U.S. stocks edge higher; solid earnings season continues
Investing.com - Stifel has reiterated its Buy rating and $200.00 price target on PTC Inc. (NASDAQ:PTC), a software company with a market capitalization of $25.25 billion and impressive gross profit margins of 81%, following reports of a potential acquisition by Autodesk (NASDAQ:ADSK).
According to Stifel analyst Adam Borg, a Bloomberg article published Wednesday revealed that Autodesk is considering acquiring PTC in a combined cash and stock transaction. The report also indicated that other industry players have expressed interest in PTC. InvestingPro data shows the company maintains a "GREAT" financial health score, with analyst targets ranging from $160 to $240 per share.
The news triggered significant market movements, with PTC shares surging approximately 18% in late trading on Wednesday. PTC’s stock price reached $210.47 following the report.
Conversely, Autodesk shares declined about 2% on Wednesday, closing at $307.27. Stifel currently maintains a Buy rating on Autodesk as well.
Despite PTC’s stock price now exceeding Stifel’s $200.00 price target following the news-driven surge, the firm has maintained its Buy rating on the company’s shares.
In other recent news, PTC Inc. has reported stronger-than-expected earnings for the second quarter of 2025, with earnings per share (EPS) of $1.79, surpassing the anticipated $1.40, and revenue reaching $636 million, exceeding the forecasted $608.77 million. This robust performance was driven by a 10% year-over-year growth in annual recurring revenue (ARR), particularly in the CAD and PLM segments. Analyst firms have responded to these developments with varied outlooks. KeyBanc raised its price target for PTC to $192, maintaining an Overweight rating, highlighting the company’s focus on durable free cash flow growth and strategic pricing adjustments. Conversely, Berenberg lowered its price target to $190 while keeping a Hold rating, acknowledging successful cross-selling efforts in the automotive and industrial sectors. BMO Capital Markets increased its price target to $187, citing strong fiscal second-quarter results and a positive long-term outlook for PTC’s product lifecycle management and AI tools. Additionally, PTC has introduced Creo 12, an enhanced version of its CAD software, which includes AI-powered generative design capabilities and improved collaboration tools. These recent developments reflect PTC’s ongoing strategic initiatives and market position amidst macroeconomic uncertainties.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.