Rosenblatt downgrades Bentley Systems stock to Neutral on valuation

Published 07/08/2025, 13:24
Rosenblatt downgrades Bentley Systems stock to Neutral on valuation

Investing.com - Rosenblatt Securities downgraded Bentley Systems Inc . (NASDAQ:BSY), a $17.4 billion infrastructure software company, from Buy to Neutral on Thursday, while raising its price target to $58.00 from $53.00, citing limited upside potential at current levels. According to InvestingPro analysis, the stock is currently trading slightly above its Fair Value, with a high P/E ratio of 72.8.

The infrastructure software company reported second-quarter results that marginally exceeded Rosenblatt’s expectations, with subscription revenues reaching $333.5 million, up 12.1% year-over-year and slightly above the firm’s forecast of $327.4 million. The company maintains impressive gross profit margins of 81.3% and has achieved overall revenue growth of 10.5% over the last twelve months.

Bentley Systems achieved annual recurring revenue (ARR) growth of 11.5% in constant currency during the quarter, driven by continued adoption of its E365 subscription program, which now accounts for approximately 45% of total ARR, alongside healthy end-market demand including an improving mining segment.

The company’s SMB-focused Virtuosity offering continued to show strong performance, adding over 600 new logos in the second quarter and now representing approximately 5% of ARR growth.

Bentley Systems reaffirmed its fiscal year 2025 outlook, prompting Rosenblatt to make marginal adjustments to its estimates primarily to reflect foreign exchange impacts, while the firm’s target price increase reflects the introduction of fiscal year 2027 estimates and a rolled-forward valuation model. For deeper insights into BSY’s valuation and 12+ additional ProTips, visit InvestingPro, where you’ll find comprehensive analysis in our exclusive Pro Research Report.

In other recent news, Bentley Systems Inc. reported its second-quarter results for 2025, which exceeded analysts’ expectations. The company achieved an earnings per share (EPS) of $0.32, surpassing the forecasted $0.28. This represents a 14.29% surprise in EPS. Additionally, Bentley Systems reported revenue of $364.1 million, slightly above the anticipated $363.49 million. Despite these strong financial results, the company’s shares experienced a minor pre-market dip.

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