Critical Insights From PTC Analyst Ratings: What You Need To Know

In the preceding three months, 4 analysts have released ratings for PTC PTC, presenting a wide array of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $192.25, along with a high estimate of $202.00 and a low estimate of $182.00. No alteration is observed as the current average remains at the previous average price target.

Investigating Analyst Ratings: An Elaborate Study

A comprehensive examination of how financial experts perceive PTC is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to PTC. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of PTC compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of PTC's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of PTC's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on PTC analyst ratings.

Delving into PTC's Background

PTC offers high-end computer-assisted design (Creo) and product lifecycle management (Windchill) software as well as Internet of Things and AR industrial solutions. Founded in 1985, PTC has 28,000 customers, with revenue stemming mostly from North America (45%) and Europe (40%).

Unraveling the Financial Story of PTC

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Positive Revenue Trend: Examining PTC's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 11.23% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: PTC's net margin is impressive, surpassing industry averages. With a net margin of 18.98%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): PTC's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.98%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): PTC's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.83%, the company may face hurdles in achieving optimal financial performance.

Debt Management: PTC's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.74, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.