William Blair analyst Dylan Becker has maintained their neutral stance on ANSS stock, giving a Hold rating today.
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Dylan Becker’s rating is based on several factors influencing Ansys’s current market position. The company’s fourth-quarter results showcased a robust 11% revenue growth in constant currency, reaching $882 million. Despite this growth, the variability in revenue recognition due to ASC 606 accounting standards leads to fluctuating top-line results, which could impact investor confidence.
Another reason for the Hold rating is the ongoing acquisition by Synopsys, valued at approximately $35 billion in a cash and stock deal. This pending transaction has led Ansys to suspend future guidance and forgo hosting its usual earnings call, adding an element of uncertainty. The company’s solid non-GAAP operating margin of 53% and EPS of $4.44, while positive, are overshadowed by the lack of forward-looking information. These elements combined suggest a cautious approach, leading to the Hold recommendation.
Becker covers the Technology sector, focusing on stocks such as Manhattan Associates, ServiceTitan, Inc. Class A, and Powerfleet. According to TipRanks, Becker has an average return of 15.0% and a 71.70% success rate on recommended stocks.