/PTC%20Inc%20logo%20on%20building-by%20JHVEPhoto%20via%20Shutterstock.jpg)
Headquartered in Boston, Massachusetts, PTC Inc. (PTC) provides digital transformation solutions with a market cap of $20.94 billion. Specializing in software for product lifecycle management, industrial IoT, and augmented reality, PTC plays a pivotal role in helping businesses across various industries drive innovation and improve operational efficiency. The company’s comprehensive suite of software solutions enables organizations to design, manufacture, and manage products more effectively, ensuring they stay competitive in an increasingly digital world.
Shares of PTC have underperformed the broader market over the past year. The stock has gained 23.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. Also, in 2024, PTC is up marginally compared to SPX’s 16.8% rise on a YTD basis.
Narrowing the focus, PTC’s underperformance is also evident compared to the iShares Expanded Tech-Software Sector ETF (IGV). The exchange-traded fund has gained 5.9% on a YTD basis.
PTC reported its Q3 results on Jul. 31, with revenue of $518.60 million, which fell short of the Street forecasts of $533 million. The company matched the earnings estimate of $0.98. For the full year, PTC anticipates revenue ranging from $2.27 billion to $2.34 billion and earnings between $4.85-$5.21 per share. Following the release of its results, the stock gained marginally.
For the current fiscal year, ending in September, analysts expect PTC’s EPS to grow 18.5% year over year to $3.52 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing on one other occasion.
Among the 17 analysts covering PTC stock, the consensus rating is a “Strong Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
This configuration is slightly less bullish than three months ago, with 14 analysts recommending a “Strong Buy.”
On Aug 1, Kenneth Wong from Oppenheimer maintained a “Buy” rating on PTC, with a price target of $210, implying a potential upside of 20% from current levels.
The mean price target is $201.18, representing a 15% premium to PTC’s current price levels. The Street-high price target of $220 suggests an upside potential of 25.7%.
On the date of publication, Rashmi Kumari 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.
