J.P. Morgan Downgrades PTC to Underweight Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 11 2024
0mins
Should l Buy PTC?
Source: Benzinga
PTC Inc. saw a decline of 4.05% in regular trading, hitting a 20-day low amid broader market weakness, with the Nasdaq-100 down 1.35% and the S&P 500 down 0.72%.
The downgrade from J.P. Morgan to Underweight, with a reduced price target from $205 to $162, reflects concerns over PTC's strategic focus on legacy CAD and PLM, which limits growth opportunities. Analysts highlighted intensified competition from Siemens and Dassault, as well as PTC's slow transition to cloud solutions, which could further impact its market position.
This downgrade may lead to increased scrutiny from investors as PTC prepares for its upcoming Q1 earnings report on February 4, where expectations for EPS and revenue growth remain high despite the recent negative sentiment.
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Analyst Views on PTC
Wall Street analysts forecast PTC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PTC is 218.00 USD with a low forecast of 175.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
6 Buy
4 Hold
0 Sell
Moderate Buy
Current: 153.940
Low
175.00
Averages
218.00
High
255.00
Current: 153.940
Low
175.00
Averages
218.00
High
255.00
About PTC
PTC Inc. is a global software company that enables industrial and manufacturing companies to digitally transform how they engineer, manufacture, and service the physical products. Its computer-aided design (CAD) portfolio solutions enable companies to author product data. Its product lifecycle management (PLM) portfolio solutions enable companies to manage product data and orchestrate processes. Its software can be delivered on premises, in the cloud or in a hybrid model. Its PLM products and services include Windchill PLM, ThingWorx, ServiceMax, Arena, Codebeamer, Servigistics, FlexPLM and Kepware. Its CAD products and services include Creo 3D, Onshape, Vuforia and Arbortext. Its Windchill PLM application suite manages all aspects of the product development lifecycle-from concept through service and retirement-by enabling a digital thread of product parts, materials and configuration information. Its ThingWorx platform is flexible and purpose-built for industrial Internet of things.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Share Sale Announcement: Kristian Talvitie plans to sell 28,196 shares of PTC Inc. on February 6, with a total market value of approximately $4.39 million.
Reduction in Shareholding: Talvitie has reduced his shareholding in PTC Inc. by 54,949 shares since December 5, 2025, with a total value of around $9.52 million.
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- Share Repurchase Program: The company repurchased $200 million of common stock in Q1 and plans to increase buybacks to $250 million in Q2, aiming to reduce the diluted share count to approximately 119 million shares, thereby enhancing shareholder value and market confidence.
- Accelerating Strategic Transformation: Management emphasized that PTC is at a strategic inflection point with accelerating product roadmap releases and record deferred ARR under contract, showcasing the company's strong demand capture capabilities under its Intelligent Product Lifecycle vision.
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- Revenue Expectations: The anticipated revenue of $634.33 million represents a 12.3% year-over-year growth, indicating that the company is maintaining strong performance in a continuously growing market, potentially attracting more investor interest.
- Historical Performance: Over the past two years, PTC has achieved a 100% accuracy rate in EPS estimates and an 88% accuracy rate in revenue estimates, showcasing its strong forecasting capabilities and enhancing market confidence in its future performance.
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- PTC Downgrade: PTC's rating was downgraded to Underweight with a price target reduced from $205 to $162, as analysts noted its strategic narrowing and focus on legacy CAD and PLM, which diminishes growth options and exposes the company to risks as customer needs evolve.
- Accelerated Technological Change: Analysts emphasized Autodesk's forefront position in AI integration, enabling design optimization, rapid data access, and predictive modeling that streamline workflows and reduce project timelines, with customer feedback indicating a trend towards standardization on Autodesk for design and compliance needs.
- Intensified Market Competition: PTC faces strong competition from Siemens and Dassault in the PLM space, with analysts noting that its desktop-heavy CAD business and slow cloud evolution further weaken its competitive position, while customer dissatisfaction with reduced flexibility may lead them to explore alternative vendors.
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Microsoft's Earnings Impact: Microsoft experienced a significant drop of 10% in its stock value, resulting in a loss of $357 billion in market capitalization following a disappointing earnings report.
Silver Market Collapse: The silver market faced a dramatic decline, falling 31% in a single day, attributed to the nomination of hawkish Kevin Warsh as the next Fed Chair and a prior 50% increase in value this year.
Overall Economic Sentiment: The combination of these events reflects a turbulent economic sentiment, with investors reacting to both corporate earnings and shifts in monetary policy.
See More
PTC Inc. Officer Plans to Sell $4.39 Million in Common Stock via Form 144
Share Sale Announcement: Kristian Talvitie plans to sell 28,196 shares of PTC Inc. on February 6, with a total market value of approximately $4.39 million.
Reduction in Shareholding: Talvitie has reduced his shareholding in PTC Inc. by 54,949 shares since December 5, 2025, with a total value of around $9.52 million.
See More
PTC Q1 2026 Earnings Call Highlights
- Strong Financial Performance: PTC reported a constant currency ARR of $2.341 billion in Q1, reflecting a 9% year-over-year growth, while including Kepware and ThingWorx, the ARR reached $2.5 billion, up 8.4%, indicating robust market growth and solid cash flow performance.
- Share Repurchase Program: The company repurchased $200 million of common stock in Q1 and plans to increase buybacks to $250 million in Q2, aiming to reduce the diluted share count to approximately 119 million shares, thereby enhancing shareholder value and market confidence.
- Accelerating Strategic Transformation: Management emphasized that PTC is at a strategic inflection point with accelerating product roadmap releases and record deferred ARR under contract, showcasing the company's strong demand capture capabilities under its Intelligent Product Lifecycle vision.
- Optimistic Future Outlook: CFO DiRico reaffirmed fiscal 2026 ARR growth guidance of 7.5%-9.5% and projected Q2 free cash flow between $310 million and $315 million, reflecting the company's confidence in future performance and ongoing financial health.
See More
PTC to Announce Q1 Earnings on February 4
- Earnings Announcement: PTC is set to release its Q1 earnings report on February 4, with consensus EPS estimates at $1.56, reflecting a 41.8% year-over-year increase, which could further solidify its profitability in the industry.
- Revenue Expectations: The anticipated revenue of $634.33 million represents a 12.3% year-over-year growth, indicating that the company is maintaining strong performance in a continuously growing market, potentially attracting more investor interest.
- Historical Performance: Over the past two years, PTC has achieved a 100% accuracy rate in EPS estimates and an 88% accuracy rate in revenue estimates, showcasing its strong forecasting capabilities and enhancing market confidence in its future performance.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 8 upward revisions and 4 downward revisions, while revenue estimates experienced 5 upward and 7 downward revisions, reflecting varying market perceptions of PTC's future performance, which may influence investor decisions.
See More
Natural Gas Demand Surge Draws Market Attention
- Surge in Natural Gas Demand: The massive snowstorm has led to a significant rise in natural gas demand, drawing attention to midstream companies like Targa Resources, whose stock is nearing all-time highs, reflecting market interest in energy infrastructure.
- Strong Performance by Targa Resources: Targa Resources reported a record adjusted EBITDA of $1.27 billion for Q3 2025, a 19% year-over-year increase, with net income reaching $478.4 million, showcasing robust growth in the natural gas transmission sector.
- Devon Energy Merger Talks: Devon Energy achieved an oil production average of 390,000 barrels per day in Q3 2025 and is in discussions to merge with Coterra Energy, potentially creating a $57 billion independent U.S. shale producer, indicating a trend towards industry consolidation.
- Corteva Raises Guidance: Corteva has raised its full-year 2025 EBITDA guidance to between $3.8 billion and $3.9 billion, representing a 14% growth, highlighting strong performance and renewed market confidence in the agricultural sector.
See More
J.P. Morgan Upgrades Autodesk to Overweight, Downgrades PTC to Underweight
- Autodesk Upgrade: J.P. Morgan upgraded Autodesk from Neutral to Overweight with a price target of $319, highlighting its leadership in design and BIM software, rapid adoption of cloud and AI technologies, and positioning to capture larger market share in high-growth areas like data centers and infrastructure.
- PTC Downgrade: PTC's rating was downgraded to Underweight with a price target reduced from $205 to $162, as analysts noted its strategic narrowing and focus on legacy CAD and PLM, which diminishes growth options and exposes the company to risks as customer needs evolve.
- Accelerated Technological Change: Analysts emphasized Autodesk's forefront position in AI integration, enabling design optimization, rapid data access, and predictive modeling that streamline workflows and reduce project timelines, with customer feedback indicating a trend towards standardization on Autodesk for design and compliance needs.
- Intensified Market Competition: PTC faces strong competition from Siemens and Dassault in the PLM space, with analysts noting that its desktop-heavy CAD business and slow cloud evolution further weaken its competitive position, while customer dissatisfaction with reduced flexibility may lead them to explore alternative vendors.
See More
Key Highlights to Monitor This Week: Jobs Report, Amazon, Disney, Alphabet, Palantir, and More
Market Volatility: Last week saw increased volatility in equities, with the S&P 500 ending slightly up and the Nasdaq Composite slightly down after a steady interest rate announcement by the Federal Open Market Committee.
Microsoft's Earnings Impact: Microsoft experienced a significant drop of 10% in its stock value, resulting in a loss of $357 billion in market capitalization following a disappointing earnings report.
Silver Market Collapse: The silver market faced a dramatic decline, falling 31% in a single day, attributed to the nomination of hawkish Kevin Warsh as the next Fed Chair and a prior 50% increase in value this year.
Overall Economic Sentiment: The combination of these events reflects a turbulent economic sentiment, with investors reacting to both corporate earnings and shifts in monetary policy.
See More
