PTC Analyst Turns Bullish, As Stock Trades At Discount To Peers

Shares of PTC Inc. (NASDAQ: PTC) were climbing in early trading on Monday, just weeks after the company acquired Pure-Systems.

As optimism around growth across the software segment wanes, PTC and other “durable cash flow generators” could attract more investor attention, according to Oppenheimer.

The PTC Analyst: Ken Wong upgraded the rating for PTC from Perform to Outperform, while establishing a price target of $165.

The PTC Thesis: The company is likely to continue exhibiting “resilient low-double digit to teens ARR growth while remaining disciplined on expenses” to deliver more than 20% free cash flow per share growth, Wong said in the upgrade note.

Check out other analyst stock ratings.

“We also see potential for business segments outside of CAD / PLM to improve unit economics with scale or product streamlining,” the analyst wrote.

PTC’s stock trades at a “meaningful discount to peers,” which could narrow “as investors gain confidence that ongoing business transitions (Cloud, CEO, ServiceMax integration) will not derail the FCF trajectory,” he added.

PTC Price Action: Shares of PTC had risen by 1.71% to $138.38 at the time of publication Monday.

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