PTC stock price target raised to $192 from $185 at KeyBanc

Published 07/07/2025, 15:08
PTC stock price target raised to $192 from $185 at KeyBanc

Investing.com - KeyBanc has raised its price target on PTC Inc. (NASDAQ:PTC) to $192.00 from $185.00 while maintaining an Overweight rating on the stock. The company, currently trading at $175.23 with a market capitalization of $21 billion, maintains impressive gross profit margins of 81% and demonstrates good overall financial health according to InvestingPro analysis.

The firm cited improved channel tone quarter-over-quarter, with no noticeable slowdown or deal downsizing observed in the market. KeyBanc also noted that PTC implemented an ordinary price increase in the second calendar quarter.

According to KeyBanc, PTC is exploring pricing and packaging changes as part of its go-to-market evolution strategy. The firm expects in-line to slightly higher fiscal third-quarter constant currency annual recurring revenue results.

KeyBanc anticipates PTC will nominally raise the low end of its fiscal year 2025 constant currency annual recurring revenue growth guidance to 7.5-9%.

The firm maintained its Overweight rating, expressing encouragement about PTC’s focus on driving durable free cash flow growth, with the price target increase based on 25 times fiscal year 2026 enterprise value to free cash flow.

In other recent news, PTC Inc. reported strong financial results for the second quarter of 2025, with earnings per share (EPS) reaching $1.79, significantly surpassing the expected $1.40. The company’s revenue also exceeded forecasts, coming in at $636 million compared to the anticipated $608.77 million. Annual Recurring Revenue (ARR) grew by 10% year-over-year, driven by robust performance in the CAD and PLM segments. BMO Capital Markets responded by raising PTC’s stock price target to $187, citing strong quarterly results and maintaining an Outperform rating. In contrast, Berenberg adjusted its price target for PTC to $190 from $196, while keeping a Hold rating, highlighting the company’s successful cross-selling efforts and go-to-market realignment. Additionally, PTC launched Creo 12, the latest version of its CAD software, which includes enhancements like AI-powered generative design and improved cable harness design capabilities. These developments reflect PTC’s ongoing efforts to enhance its product offerings and strengthen its market position amidst macroeconomic uncertainties.

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