-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our price target from $176 to $164, applying a P/E of 20x to our FY 26 (Sep.) EPS estimate, below PTC's three-year average (~30x) on headwinds from an uncertain macroeconomic environment and a perception of rising AI competition over the long term. We lift our FY 26 EPS view by $0.22 to $8.21 and our FY 27 estimate by $0.34 to $8.79. Remaining performance obligations (RPO) continue to build (up 10% Y/Y to $2.5B), providing decent visibility that we consider valuable amid heightened macro uncertainty, and we like management's confidence around a "significant step up" in deferred ARR balances in Q4. Still, we see risk in the realization timeline of this future revenue, and while we believe PTC's proprietary data should insulate it from third-party AI threats, the company's own agentic products (eight released in 2025, 14 planned for 2026) appear to still be in their early stages and far away from material revenue generation. Q3's guidance was likely conservative, but still a bit short of consensus.