Needham & Company Starts ANSYS (ANSS) at Hold

November 22, 2016 6:24 AM EST
Get Alerts ANSS Hot Sheet
Price: $93.49 --0%

Rating Summary:
    5 Buy, 17 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 28 | Down: 28 | New: 23
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Needham & Company initiates coverage on ANSYS (NASDAQ: ANSS) with a Hold rating.

Analyst Richard Valera commented, "ANSYS is the leading player in the ~$5B Simulation & Analysis software market, with an impressive operating history. However, revenue growth has slowed recently due to macro headwinds, most notably in the semi and energy end markets, and from a gradual transition to a more ratable license model. As the company sees easier comps in the semi and energy markets, we see its bookings growth likely moving back toward the high-single digit level implied in the company's C'17 guidance. That said, with high-40% op margins that leave little room for expansion, we see current valuation--at ~7x EV/C2017 sales and ~22x C'17 ex-cash NG EPS--as likely already anticipating this improved performance. We initiate with a Hold rating and would look for evidence of upside to our estimates or a pullback in the shares to become more positive."

For an analyst ratings summary and ratings history on ANSYS click here. For more ratings news on ANSYS click here.

Shares of ANSYS closed at $93.77 yesterday.

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