Intel stock extends gains after report of possible U.S. government stake
Investing.com - Oppenheimer raised its price target on PTC Inc. (NASDAQ:PTC) to $210.00 from $190.00 on Wednesday, while maintaining an Outperform rating on the software company’s stock. The company, currently trading at $192.22 with a market capitalization of $23.06 billion, maintains impressive gross profit margins of 81.13% and demonstrates good overall financial health according to InvestingPro metrics.
The price target increase was attributed to higher market multiples, according to Oppenheimer’s research note, though the firm noted investor sentiment remains mixed with a "derisked" outlook providing downside support.
Oppenheimer indicated its recent research suggests limited downside to current numbers but acknowledged some concern over customer churn, with investors expecting in-line net new Annual Recurring Revenue of approximately $40 million for the fiscal third quarter.
The research firm anticipates PTC management will reiterate its full-year outlook, though bears worry commentary might steer away from the high end of guidance, with free cash flow expectations considered safe.
Potential catalysts for PTC stock include improvements in go-to-market strategy, pricing adjustments, and possible inbound merger and acquisition interest, according to Oppenheimer’s analysis.
In other recent news, PTC has announced a new Aerospace & Defense Startup Program that offers free access to its product development software suite for eligible startups. This initiative is designed to support startups in meeting industry demands for faster development cycles and regulatory compliance. In acquisition news, Autodesk (NASDAQ:ADSK) is reportedly considering acquiring PTC in a cash and stock transaction, as revealed by a Bloomberg article. This has led Stifel to maintain a Buy rating on PTC, despite its stock price now exceeding their $200.00 price target.
KeyBanc has raised its price target for PTC to $192.00 from $185.00, maintaining an Overweight rating due to improved market conditions and PTC’s strategic pricing adjustments. Conversely, Berenberg has reduced its price target to $190.00 from $196.00, while maintaining a Hold rating, noting PTC’s strong cross-selling efforts and successful go-to-market realignment. PTC has also launched Creo 12, an updated version of its CAD software, which enhances design and collaboration capabilities for manufacturers. This update introduces new features such as AI-driven generative design and improved cable harness design, aligning with industry trends in electrification and sustainability.
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