Wedbush Raises Price Target on PTC (PTC) After Adjusting Estimates

November 9, 2016 7:31 AM EST
Get Alerts PTC Hot Sheet
Price: $47.38 --0%

Rating Summary:
    12 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 7 | Down: 8 | New: 1
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Wedbush reiterated an Outperform rating on PTC Inc. (NASDAQ: PTC), and raised the price target to $56.00 (from $54.00). Management expects to achieve its prior FY21 targets a year earlier, and raised its FY21 expectations by $75M in FCF (to $525M), $0.40 in EPS (to $4.15), and 200 bps in operating margin (to 33% implied).

Analyst Steve Koenig commented, "Our waterfall model suggests PTC’s increase to its long-term revenue, EPS, and cash flow guidance is well grounded in its FY16 model transition progress. This progress bodes well for long-term shareholder value, given higher FY21 EPS and cash flow generation, a plan to restart stock repurchases in 2H17 at 40% of FCF, and an intact growth outlook exiting this target year. In addition, prospects for continuing conversion of maintenance customers to subscriptions help to reduce risk and/or provide upside potential. We’re increasing our PT to $56 on a higher long-term DCF ($64), balanced by lower P/E and EV/FCF approaches given pressure on near-term metrics due to its transition."

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

Shares of PTC Inc. closed at $46.68 yesterday.

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Analyst Comments, Analyst EPS Change, Analyst PT Change

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