UPDATE: Oppenheimer Starts Altair Engineering (ALTR) at Outperform

(Updated - July 26, 2022 4:31 PM EDT)

Oppenheimer analyst Ken Wong initiates coverage on Altair Engineering (NASDAQ: ALTR) with a Outperform rating and a price target of $60.00.

The analyst comments "We are initiating coverage of Altair (ALTR) with an Outperform rating and a $60 price target. We believe Altair is finally on the right path to close the profitability gap with Industrial Software peers (mid-teens operating margins vs. 30-40%). CEO Jim Scapa has improved execution, giving us comfort in our projection for sustained low-double-digit organic growth. We believe the revised Unit bundles offer superior price segmentation, opening up the SMB market, while retaining pricing power with enterprise users. We see improved execution in Data Analytics as an incremental source of growth. CFO Matt Brown has paired improved operational discipline with a strategic pullback from low-margin services to raise the profit ceiling. ALTR's units-based licensing should prove more resilient than peers' under recessionary conditions."

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

Shares of Altair Engineering closed at $54.38 yesterday.

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