PTC stock price target raised to $220 from $160 at Mizuho on strong results

Published 31/07/2025, 14:52
PTC stock price target raised to $220 from $160 at Mizuho on strong results

Investing.com - Mizuho (NYSE:MFG) has raised its price target on PTC Inc. (NASDAQ:PTC) to $220.00 from $160.00 while maintaining a Neutral rating following the company’s strong fiscal third-quarter results. The stock, currently trading at $216.72, is approaching its 52-week high of $213.14. According to InvestingPro analysis, PTC appears to be trading above its Fair Value, suggesting careful consideration for new positions.

PTC reported revenue growth of 24% year-over-year for the quarter, significantly outpacing consensus expectations of 12%. The company’s earnings per share reached $1.64, exceeding the consensus estimate of $1.21. With an impressive gross profit margin of 81.13% and a market capitalization of $25.96 billion, PTC demonstrates strong financial fundamentals. InvestingPro data reveals 14 additional key insights about PTC’s performance and valuation metrics.

Management has increased the lower end of its fiscal year 2025 constant currency annual recurring revenue growth guidance from 7-9% to 8-9%, citing improved visibility into year-end performance. Despite a slow start to the third quarter due to macroeconomic and trade uncertainty, the company noted signs of stabilization by June.

PTC also raised its fiscal year 2025 revenue guidance based on favorable foreign exchange conditions, while maintaining its free cash flow forecast at the higher end of its previous range due to more predictable billings.

Mizuho’s price target increase reflects a multiple re-rating, with the firm acknowledging PTC’s solid progress on generative AI product initiatives and go-to-market changes that have resulted in a higher-quality pipeline, including a record number of deals exceeding $5 million.

In other recent news, PTC Inc. reported its third-quarter 2025 earnings, revealing a robust performance that exceeded analyst expectations. The company posted earnings per share of $1.64, significantly surpassing the projected $1.21. Revenue for the quarter reached $644 million, well above the anticipated $582.3 million. Following these results, Rosenblatt raised its price target for PTC to $227, maintaining a Buy rating. Similarly, BMO Capital increased its price target to $231, keeping an Outperform rating on the stock. BMO Capital noted modest improvements in deal trends, describing the results as "better than feared." Despite the strong financial performance, market sentiment appeared cautious. These developments reflect a positive outlook from analysts regarding PTC’s recent performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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