Analyst Expectations For Altair Engineering's Future

In the latest quarter, 4 analysts provided ratings for Altair Engineering ALTR, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $91.0, a high estimate of $100.00, and a low estimate of $86.00. Observing a 7.69% increase, the current average has risen from the previous average price target of $84.50.

Diving into Analyst Ratings: An In-Depth Exploration

In examining recent analyst actions, we gain insights into how financial experts perceive Altair Engineering. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Altair Engineering. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Altair Engineering compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Altair Engineering's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Altair Engineering's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Altair Engineering analyst ratings.

Unveiling the Story Behind Altair Engineering

Altair Engineering Inc is a provider of enterprise-class engineering software enabling origination of the entire product lifecycle from concept design to in-service operation. The integrated suite of software provided by the company optimizes design performance across multiple disciplines encompassing structures, motion, fluids, thermal management, system modeling, and embedded systems. It operates through two segments: Software which includes the portfolio of software products such as solvers and optimization technology products, modeling and visualization tools, industrial and concept design tools, and others; and Client Engineering Services which provides client engineering services to support customers. Majority of its revenue comes from the software segment.

Altair Engineering: Delving into Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Altair Engineering's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 12.28%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Altair Engineering's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -3.26%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Altair Engineering's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -0.7%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Altair Engineering's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.35%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 0.54, Altair Engineering faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Significance of Analyst Ratings Explained

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

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.