Rosenblatt Reiterates Buy Rating on Altair Engineering (ALTR) Following RapidMiner Deal

Rosenblatt analyst Blair Abernethy reiterated a Buy rating and $70.00 price target on Altair Engineering (NASDAQ: ALTR) after the company announced an agreement to acquire RapidMiner.

The analyst commented, "Tuesday, after market close, Altair announced an agreement to acquire RapidMiner, a leading provider of data analytics and machine learning software platform, used by over 1m people at all skill levels, and including cloud and on-prem offerings. This software develops data pipelines and ML models at production-scale using hundreds of drag-and-drop building blocks. Altair plans to integrate RapidMiner with its existing tools, including Altair Knowledge Studio, Altair SmartWorks, and Altair SLC. The acquisition consideration is $100m all cash, no stock, and is expected to close within 30 days, with no material impact to Altair’s revenues or earnings for FY22.

We believe this acquisition would significantly boost the Company’s end-to-end data and analytics portfolio, along with a stepped-up market presence (especially manufacturing and financial services). We view Rapid Miner as supportive of Altair’s convergence strategy and should improve Altair’s organic growth profile. Recall that Altair made its first major analytics/data science acquisition Datawatch for $176m in December 2018. This anchored its position in the data analytics/ML market and the emerging IoT market segment, along with acquisitions Carriots and CANDI. The Company also bought World Programming (SAS language compiler) in December 2021, for an aggregate consideration of $73m."

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 $49.76 yesterday.

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