Close

Wedbush Upgrades ANSYS (ANSS) to Outperform; Analyst Sees Attractive Entry

March 27, 2014 7:26 AM EDT
Get Alerts ANSS Hot Sheet
Price: $347.16 -0.22%

Rating Summary:
    11 Buy, 18 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Join SI Premium – FREE
Wedbush upgraded ANSYS (NASDAQ: ANSS) from Neutral to Outperform with a price target of $88.00 (from $86.00). Analyst Steve Koenig sees an attractive entry point.

"Our upgrade stems from a more attractive entry point for ANSS shares, data points from ANSS's recent investor day that make us more optimistic about the company's FY14 outlook, and indications of improvement in the software demand environment in North America and Europe," said Koenig.

"We view ANSS as a well-positioned and disciplined company with good long-term growth prospects. Investors are used to paying up for ANSS, given its high operating margins, long track record of growth, and heavy mix of recurring revenue. Now, we believe a pullback in ANSS shares over the last several weeks and months provides a rare opportunity to own this competitively advantaged and highly profitable company at reasonable multiples. At present, ANSS shares are trading almost at parity, with a 5% premium to the median forward software P/E, well below their historical premium of 25-30%," he added.

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 $74.00 yesterday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS View, Analyst PT Change, Upgrades