Wedbush Remains Bullish on PTC (PTC) Seeing Compelling Entry Point

Wedbush reiterated an Outperform rating and $42.00 price target on PTC Inc. (NASDAQ: PTC) as 7% FCF yield represents compelling value. Analyst Steve Koenig sees shares decline as a compelling entry point.

Koenig commented, "PTC’s core computer-aided design (CAD) and product lifecycle management (PLM) markets may have little growth left, but they are sticky. Vendor replacement is the rare exception, as customers have years of investment and product data tied to their CAD and PLM deployments. PTC’s trading multiples have been hammered by investor concerns about demand conditions in global manufacturing, particularly in PTC’s industrial end markets (about 30% of revenue, by our estimation). 12-month price action for tickers such as IR, HON, MMM, DE, and CAT illustrates the concern over demand conditions for industrial manufacturers (particularly U.S. exporters) and the headwinds for PTC’s license sales to these companies. Since June 23rd , PTC shares are down 21% vs. a 5% decline for the S&P 500. At present, PTC sports a 7% FCF yield, which we think represents compelling value for an enterprise software company with high retention rates and a management team focused on margin expansion while prudently pursuing growth in its promising IoT business."

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

Shares of PTC Inc. closed at $33.42 yesterday.

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