PTC Inc. Stock: Mixed Signals in Performance and Projections
Overview of PTC Inc.
Boston, Massachusetts-based PTC Inc. (PTC) offers software solutions and services that help manufacturing companies design, operate, and manage products internationally. With a market capitalization of $23.2 billion, PTC’s reach extends across the Americas, Europe, and the Indo-Pacific region.
Performance Compared to Market Standards
Over the past year, PTC has struggled to keep up with broader market gains. Year-to-date, PTC’s stock has risen by 10.2% and 23.5% over the past year, falling short of the S&P 500 Index’s ($SPX) impressive 24.7% increase in 2024 and a robust 31.1% rise over the last year.
Underperformance Against Industry Peers
When examined closely, PTC has also lagged behind the Technology Select Sector SPDR Fund’s (XLK) year-to-date gains of 21.3% and a 26.9% increase over the last year.
Recent Earnings and Market Reaction
On November 6, PTC reported better-than-expected Q4 adjusted earnings per share (EPS) of $1.54 and revenue of $626.5 million. However, PTC stock declined more than 4% the following day as investors reacted to a disappointing revenue forecast for Q1, which estimated $540 million to $570 million—well below analyst expectations. Concerns also arose regarding ongoing low demand for industrial design and testing software amidst budget constraints and economic uncertainty. Furthermore, the company’s reduced earnings guidance for Q1, projecting EPS of $0.75 to $0.95, missed analysts’ estimates significantly.
Future Growth Expectations
For the current fiscal year ending in September 2025, analysts predict PTC will achieve a 27.3% year-over-year growth in EPS, reaching $4.67. Notably, PTC has a strong history of surpassing analyst expectations, having done so for the past four quarters.
Analysts’ Recommendations
PTC stock holds a consensus “Strong Buy” rating overall. Out of the 18 analysts analyzing the stock, 13 recommend “Strong Buy,” one advises “Moderate Buy,” and four suggest a “Hold” rating.
This outlook reflects a slight decrease in optimism compared to three months ago, when there were 14 “Strong Buy” ratings for the stock.
Price Target Insights
On November 7, Baird analyst Joe Vruwink upheld an “Outperform” rating and increased the price target to $228, indicating an 18.3% upside potential from current levels. The average price target for PTC stands at $210.50, suggesting a 9.2% premium over current prices, while the highest price target of $240 implies a significant upside of 24.5%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
