PTC Inc

PTC: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$754.00	Thssbgx	Nbbshclty

PTC Earnings: Strong Revenue and Margin Performance, but Guidance Likely Underwhelms

Brian Colello , Verushka Shetty

May 2, 2024

We maintain our $138 per share fair value estimate for narrow-moat PTC after the firm reported fiscal second-quarter results above our expectations. We are pleased with the continued business momentum under PTC’s new CEO, and believe the firm is positioning its portfolio well to capitalize on digital transformation opportunities in end markets. Management narrowed its 2024 guidance ranges for both the top and bottom line, and also adjusted its medium-term target for annualized recurring revenue growth. While shares dropped 5% after hours, likely due to lower-than-expected third-quarter guidance, we continue to view the stock as overvalued.

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