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Boston, Massachusetts-based PTC Inc. (PTC) provides software solutions and services globally that aid manufacturing companies in designing, operating, and managing products. With a market cap of $23.2 billion, PTC’s operations span the Americas, Europe, and the Indo-Pacific.
The tech major has lagged behind the broader market over the past year. PTC stock has gained 10.2% on a YTD basis and 23.5% over the past year, lagging behind the S&P 500 Index’s ($SPX) 24.7% gains in 2024 and 31.1% returns over the past year.
Narrowing the focus, PTC has underperformed the Technology Select Sector SPDR Fund’s (XLK) gains of 21.3% on a YTD basis and 26.9% over the past year.
Despite reporting better-than-expected Q4 adjusted EPS of $1.54 and revenue of $626.5 million on Nov. 6, PTC stock dropped over 4% the following day due to its disappointing Q1 revenue forecast, which projected $540 million to $570 million, well below analysts' estimate. Investors were also concerned about the ongoing softness in demand for industrial design and testing software amid tight budgets and an uncertain economic environment. Additionally, PTC's lowered earnings guidance for Q1, with a projection of $0.75 per share to $0.95 per share, significantly missed the analysts' estimate.
For the current fiscal year, ending in September 2025, analysts expect PTC to report a 27.3% year-over-year growth in EPS to $4.67. Moreover, the company has a robust earnings surprise history. It has surpassed analysts’ earnings estimates in the past four quarters.
PTC stock has a consensus “Strong Buy” rating overall. Among the 18 analysts covering the stock, 13 recommend “Strong Buy,” one advises “Moderate Buy,” and four suggest a “Hold” rating.
This configuration is slightly less bullish than three months ago, with 14 “Strong Buy” ratings on the stock.
On Nov. 7, Baird analyst Joe Vruwink maintained an “Outperform” rating while raising the price target to $228, indicating an 18.3% upside potential from the current price levels.
PTC’s mean price target of $210.50 represents a premium of 9.2% to current price levels. Meanwhile, the Street-high price target of $240 suggests a massive potential upside of 24.5%.
