S&P Equity Research Downgrades ANSYS (ANSS) to Hold
ANSS Hot Sheet
Rating Summary:4 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
S&P Equity Research downgrades ANSYS (Nasdaq: ANSS) from Buy to Hold.
S&P analyst, J. Yin, says, "Our downgrade is based on valuation, following a significant price appreciation that has moved the shares closer to our 12-month target price, which we are keeping at $48 based on a blend of DCF and P/E analyses. While we believe ANSS will benefit from increased global manufacturing activity, we are concerned about a slowdown in the global economy. We think forex will become less favorable as the U.S. dollar appreciates against other currencies. We are wary of possible integration issues with the pending acquisition of Ansoft (Nasdaq: ANST), subject to customary approvals."
(NOTE - This morning, ANSYS announced that the U.S. Department of Justice and Federal Trade Commission have granted early termination of the Hart-Scott-Rodino (HSR) waiting period for the proposed acquisition of Ansoft. ANSYS currently expects to close the acquisition in the second quarter of 2008. ANSYS will acquire Ansoft for approximately $832 million in a mix of cash and ANSYS common stock)
ANSYS, Inc. (ANSYS) develops and globally markets engineering simulation software and services used by engineers and designers across a range of industries, including aerospace, automotive, manufacturing, electronics, biomedical and defense.[SM]
S&P analyst, J. Yin, says, "Our downgrade is based on valuation, following a significant price appreciation that has moved the shares closer to our 12-month target price, which we are keeping at $48 based on a blend of DCF and P/E analyses. While we believe ANSS will benefit from increased global manufacturing activity, we are concerned about a slowdown in the global economy. We think forex will become less favorable as the U.S. dollar appreciates against other currencies. We are wary of possible integration issues with the pending acquisition of Ansoft (Nasdaq: ANST), subject to customary approvals."
(NOTE - This morning, ANSYS announced that the U.S. Department of Justice and Federal Trade Commission have granted early termination of the Hart-Scott-Rodino (HSR) waiting period for the proposed acquisition of Ansoft. ANSYS currently expects to close the acquisition in the second quarter of 2008. ANSYS will acquire Ansoft for approximately $832 million in a mix of cash and ANSYS common stock)
ANSYS, Inc. (ANSYS) develops and globally markets engineering simulation software and services used by engineers and designers across a range of industries, including aerospace, automotive, manufacturing, electronics, biomedical and defense.[SM]
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