CAD and PLM software specialist PTC (PTC)
picked an interesting time to convert to a growth company, as weak PMIs
across the globe don’t really bode well for sales to industrial and
auto companies. Even so, the company has been rebuilding credibility
with some solid quarters, and I remain bullish on the potential in
leveraging IoT partnerships with Microsoft (MSFT) and Rockwell (ROK),
as well as leveraging growing interest in IoT and augmented reality (or
AR) as invaluable tools within a range of end-markets.
These shares have shot up almost 30% from my last article,
helped by a strong reaction to fiscal first quarter earnings (a clean
quarter with some guidance upside). Although the stock isn’t so
compelling anymore from a FCF/DCF perspective, I still see some
multiple-driven upside and I think annualized recurring revenue (or ARR)
growth will be the driving factor in how the stock performs in the near
term.
Read more here:
PTC Hitting Its Marks As It Transitions To An Industrial Digitalization/Automation Growth Story
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