By Sam Boughedda
KeyBanc Capital Markets analyst upgraded shares of PTC (NASDAQ:PTC) to Overweight from Sector Weight with a price target of $155 in a note Monday.
"Despite being one of the relatively better-performing software stocks in 2022, we are upgrading PTC to Overweight on our view that the company could be one of the best FCF growth stories over the next three years," wrote the analyst.
They said the company's recent transparency and conservative framework for FY23 present near-term catalysts for upside, and they consider PTC to be one of their favorite H1 ideas for 2023.
Writing about PTC's cloud strategy and durability of growth the analysts explained that it is still too early, and they do not give any credit to PTC's transition to SaaS.
"However, we do acknowledge that the Company's clear cloud strategy, growing capabilities, and LT commitment has helped drive share gains, and enabled the Company to maintain above-market growth in CAD and PLM for the past three years, and which we anticipate will continue," stated the analysts.
PTC shares have gained more than 2% so far during Monday's session.