BofA update shows where active managers are putting money
Investing.com - BMO Capital raised its price target on PTC Inc. (NASDAQ:PTC) to $231.00 from $187.00 on Thursday, while maintaining an Outperform rating on the software company’s stock. The new target represents significant upside from the current price of $202.51, with the stock already trading near its 52-week high of $213.14.
The firm’s decision follows PTC’s fiscal third-quarter 2025 results, which BMO described as "better than feared" with modest improvements in deal trends. The company maintains impressive gross profit margins of 81.13% and has demonstrated solid financial health, according to InvestingPro analysis.
PTC has lifted the low end of its annual recurring revenue (ARR) growth guidance for fiscal year 2025 to a range of 8-9%, according to BMO Capital.
The investment firm noted that the PTC investment case has evolved, with recent events refocusing attention on "the underlying quality of the assets against the current depressed macro, which may be bottoming."
BMO Capital also highlighted potential tailwinds from tax rates and foreign exchange factors that could support PTC’s goal of achieving $1 billion in free cash flow for fiscal year 2026, justifying a multiple closer to the company’s longer-term average. The company, currently valued at $24.29 billion, is among the 1,400+ US stocks covered by comprehensive Pro Research Reports on InvestingPro.
In other recent news, PTC Inc. reported impressive Q3 2025 earnings, outperforming analyst expectations. The company achieved an earnings per share of $1.64, which was significantly higher than the projected $1.21, resulting in a 35.54% earnings surprise. PTC’s revenue also exceeded forecasts, reaching $644 million compared to the anticipated $582.3 million. This performance highlights robust growth for the company in the recent quarter. Despite the positive earnings and revenue results, PTC’s stock saw a minor decline, reflecting a cautious market sentiment. These developments indicate a strong financial position for PTC, although investor reactions were mixed. Analyst firms continue to monitor the company’s performance closely, considering these recent results.
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