PTC Inc

PTC: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$588.00	Vzcgsj	Mwjzkmk

PTC Posts a Q2 Beat as Company Gains Share in CAD and PLM Markets; Maintain $105 Fair Value Estimate

Julie Bhusal Sharma

Apr 28, 2022

PTC’s second-quarter results exceed our expectations on both the top- and bottom-line—but as management has noted before, year-over-year growth on the top and bottom line isn't the most indicative metric of PTC's business due to impact from ASC 606. Nonetheless, annual recurring revenue, or ARR, a better metric to determine demand of PTC's offerings, exceeded management's expected range, even despite a $4 million impact from exiting business in Russia. All considered, we’re maintaining our fair value estimate for the narrow-moat name of $105 per share, which leaves the stock trading in fair value territory as it trades near $98 per share in after hours.

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