12:35 PM EDT, 05/02/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We drop our target to $186 from $195, on a P/E of 36x our next-12-month EPS view of $5.17, above its three-year average on margin expansion and earnings growth. We trim our FY 24 projection to $4.86 from $5.00 and cut our FY 25 EPS forecast to $5.92 from $6.03. PTC posted Q2 revenue of $603M, above consensus by $26M, while non-GAAP EPS of $1.46 beat by $0.24. Recurring revenue grew 14.6% Y/Y from an annual recurring revenue (ARR) increase of 11% Y/Y to $2.09B (12% constant currency). Both its CAD and PLM product groups reported healthy results, albeit affected by the continued sluggish demand in the broader environment; CAD ARR rose 11% (constant currency) and PLM ARR was up 13%. FY 24 ARR guidance reflected headwinds and price sensitivities under current economic conditions as PTC renegotiated some customer contracts and lowered the high end of its ARR guide by $10M. However, the firm kept its free cash flow forecast at $725M and narrowed its non-GAAP EPS range (maintained midpoint of the range at $4.85).