/Ansys%20Inc_%20logo%20on%20laptop-by%20monticello%20via%20Shutterstock.jpg)
Canonsburg, Pennsylvania-based ANSYS, Inc. (ANSS) develops and markets engineering simulation software and services for engineers, designers, researchers, and students. With a market cap of $28.2 billion, ANSYS operations span the Americas, Europe, Asia Pacific, the Middle East, and Africa.
The software giant has substantially underperformed the broader market over the past year. Over the past 52 weeks, ANSYS stock has edged up 6.8%, lagging behind the S&P 500 Index’s ($SPX) 27% returns. In 2024, ANSYS plunged 10.9%, while SPX rose 18.1% on a YTD basis.
Zooming in further, ANSYS has also underperformed the S&P Software & Services ETF SPDR’s (XSW) 19.6% returns over the past 52 weeks and 4.2% gains on a YTD basis.
Shares of ANSYS dipped 5.5% following the announcement of its acquisition by Synopsys on Jan. 16. Since then, the stock has struggled to regain its footing.
More recently, ANSYS stock dipped 1.2% following its Q2 earnings release on July 31 after the market close. Despite surpassing Wall Street’s expectations with annual revenue growth of 19.6% to $594.1 million and 87% net income growth to $130 million, the company has left investors in a state of uncertainty by suspending its quarterly earnings calls and ceasing to provide financial guidance due to the pending acquisition.
For the current fiscal year, ending in December, analysts expect ANSYS to report an EPS growth of 8.4% yearly to $7.32. The company’s earnings surprise history is mixed. It surpassed the consensus estimates in three of the past four quarters while missing on another occasion. Its EPS for the last reported quarter surpassed the estimates by 33.1% to $1.89.
Among the 13 analysts covering the ANSS stock, the consensus rating is a “Hold.” That’s based on two “Strong Buy” ratings, nine “Holds,” one “Moderate Sell,” and one “Strong Sell.”
This configuration has been consistent over the past months.
On Aug. 8, Rosenblatt analyst Blair Abernethy maintained a “Hold” rating with a price target of $335.
ANSS’ mean price target of $342.40 represents a premium of 5.9% from current price levels. The Street-high target of $375 indicates a potential upside of 15.9%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
