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July 16, 2025: Oppenheimer has raised its price target on PTC Inc. (NASDAQ: PTC) from $190 to $210, while maintaining an Outperform rating on the software company. Currently trading at $192.22, PTC holds a market cap of $23.06 billion and continues to impress with gross margins of 81.13% and overall financial strength, as noted by InvestingPro.
The price target hike reflects increased market multiples, according to Oppenheimer’s report. However, the firm highlighted mixed investor sentiment, pointing to a “derisked” outlook that supports downside protection.
Highlights from Oppenheimer’s Note:
- Customer churn remains a concern, despite projections for net new Annual Recurring Revenue (ARR) of around $40 million in fiscal Q3.
- Management is expected to reiterate full-year guidance, although some analysts caution that the tone may shift away from the high end.
- Free cash flow remains on solid footing.
- Key catalysts include a revamped go-to-market strategy, pricing changes, and potential M&A activity, particularly rumors around a possible Autodesk (NASDAQ: ADSK) acquisition.
Industry & Product Updates:
- PTC launched its Aerospace & Defense Startup Program, offering free access to its design software for qualifying startups. The initiative aims to speed up product development and help with regulatory compliance.
- The company also unveiled Creo 12, an advanced CAD software version featuring AI-driven generative design and enhanced support for cable harnesses—tapping into rising trends like electrification and sustainability.
Analyst Reactions:
- KeyBanc: Raised target to $192 from $185, maintaining Overweight due to improved conditions and pricing gains.
- Stifel: Maintains Buy, despite PTC’s stock exceeding its $200 price target, largely due to M&A potential.
- Berenberg: Trimmed target to $190 from $196, maintaining a Hold, citing strong cross-selling and go-to-market improvements.
PTC remains a solid software player in the engineering and design space, with its valuation now buoyed by both core performance and external acquisition interest.