Oppenheimer Reiterates Outperform Rating on Altair Engineering (ALTR)

Oppenheimer analyst Ken Wong reiterated an Outperform rating and $100.00 price target on Altair Engineering (NASDAQ: ALTR).

The analyst commented: "Shares are trading higher on a Reuters report that Altair is evaluating takeover interest. We see strategic candidates as more likely than a financial partner. Investors will likely spotlight EDA leader CDNS as the most likely acquirer as a counter to Synopsys' acquisition of ANSYS. Industrial Design peers (ADSK, DSY), and multi-Industrials that have shown an appetite for software such as SIE, HON, GE, etc are also candidates. Relative to ANSYS' product portfolio, we see fewer near-term synergies should Altair be acquired by an EDA vendor given the lighter presence in semis/tech. Shares already trade above ANSS takeout levels, so we view a mid-teens EV/sales multiple as the ceiling (IOT, GWRE) but a 10-15% premium is more likely ($105-$110) given the halo post-ANSS/SNPS transaction."

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 $95.18 yesterday.

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