Evercore ISI Releases a Buy Rating on PTC Inc

By Austin Angelo

Evercore ISI analyst Kenneth Talanian reiterated a Buy rating on PTC Inc (NASDAQ: PTC) today and set a price target of $65. The company’s shares closed yesterday at $53.69.

Talanian wrote:

“We believe this is well understood by investors, which is why despite failing to beat the high end of revenue / EPS guidance the stock should continue to work. The most important announcement this quarter was the intention to discontinue perpetual licenses for ~70% of PTC’s business, further accelerating the subscription transition which we believe may result in a mix of subscription business above 90% in the long term. This acceleration provides a tailwind to the company’s targeted long-term model inclusive of its $525M FCF goal in F21, in our opinion. We continue to believe that there is further upside from subscription conversions as we detailed in our note here. With solid results and a reasonable setup for the back half of the year we continue to believe PTC should outperform.”

According to TipRanks.com, Talanian is a 1-star analyst with an average return of -0.4% and a 50.0% success rate. Talanian covers the Technology sector, focusing on stocks such as Palo Alto Networks, Microsoft Corp, and Proofpoint Inc.

PTC Inc has an analyst consensus of Strong Buy, with a price target consensus of $62.

Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock.

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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.