Benchmark Raises Price Target on ANSYS (ANSS), Calls Sell-Off Great Buying Opportunity

Benchmark is reaffirming its Buy rating on shares of ANSYS (NASDAQ: ANSS) and is increasing its price target from $66 to $73 following the release of its Q4 results.

The firm notes the 4 percent decline in the stocks price presents a great opportunity for investors to build their position. Benchmark predicts revenues and EBITDA growth will "continue to accelerate into the mid-teens range and mid to upper teens range, respectively over the next 12-24 months."

Benchmark highlights four key items from the conference call;

• The $10 million drop in revenue guidance consists of $5 million from an improved business outlook offset by $15 million in unfavorable currency losses
  
• ANSS’s Japanese business remains strained
  
• Apache’s outlook is increasing
  
• Customer adoption of cloud computing in engineering simulation is progressing at a slower pace than many other software categories

To go inline with the company's guidance and business trends, Benchmark tweaked its Q1 and FY12 EPS estimates to $0.66 and $2.85. The firm also changed its revenue estimates slightly to $191 milllion and $826 million.

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

Shares of ANSYS closed at $63.08 yesterday.

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