Barclays Believes PTC Won’t Stop Here

By Carrie Williams

Barclays analyst Saket Kalia reiterated a Buy rating on PTC Inc (NASDAQ: PTC) yesterday and set a price target of $59. The company’s shares opened today at $45.96, close to its 52-week high of $47.64.

Kalia commented:

“We walk through 6 building blocks of the model in our note and raise our price target to $60 based on 17x (previously 16x) our FY21 FCF of ~$528M discounted back (which also works similar on FY20 targets as well).”

According to TipRanks.com, Kalia is a 4-star analyst with an average return of 5.2% and a 50.0% success rate. Kalia covers the Technology sector, focusing on stocks such as Nuance Communications, Palo Alto Networks, and SecureWorks Corp.

Currently, the analyst consensus on PTC Inc is Strong Buy and the average price target is $56.67, representing a 23.3% upside.

In a report issued on October 27, Wedbush also reiterated a Buy rating on the stock with a $54 price target.

Based on PTC Inc’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $288 million and GAAP net loss of -$28,473,000. In comparison, last year the company earned revenue of $313 million and had a GAAP net loss of -$5,553,000.

Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is neutral on the stock. Most recently, in August 2016, Matthew Lessner Cohen, the EVP Global Services of PTC sold 8,000 shares for a total of $340,560.

PTC, Inc. develops and provides software-based product management and development solutions. It operates through the Software Products and Services segments. The Software Products segment includes license and related support revenue for all its products except training related products. The Services segment includes consulting, implementation, training and license and support revenue for computer based training products. The company was founded in 1985 and is headquartered in Needham, MA.