Oppenheimer analyst Kenneth Wong maintained a Buy rating on Altair Engineering (ALTR – Research Report) yesterday and set a price target of $75.00.
Kenneth Wong’s Buy rating on Altair Engineering (ALTR) is primarily influenced by several impressive financial indicators and the company’s promising growth trajectory. The software company’s 3Q23 results exceeded expectations with revenue reaching $134M, surpassing the predicted $127M. The overachievement was mainly attributed to software revenue, which also exceeded estimates, recording $119M against the projected $112M. Wong was impressed by Altair’s consistent performance and the robust renewal and expansion activity.
The diversity of Altair’s customer base and their broad demand across various sectors, such as A&D, tech, and auto, also contributed to Wong’s positive outlook. Despite concerns about potential headwinds from UAW strikes and export restrictions in China, Altair did not experience any significant disruptions. Wong continues to view Altair as an attractive investment due to its potential for margin expansion. He also highlighted the company’s successful progress on adj. EBITDA margins, indicating future profitability. He adjusted his price target for Altair to $75 from $85 due to lower market multiples, but maintained his Buy rating due to the company’s strong financial performance and potential for future growth.
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Altair Engineering (ALTR) Company Description:
Altair Engineering, Inc. engages in the provision of software and cloud solutions for product design & development, high performance cloud computing and data intelligence. It operates through the following segments: Software and Client Engineering Services. The Software segment includes a portfolio of software products; as well as solvers and optimization technology products, modelling and visualization tools. The Client Engineering Services segment engages in the provision of client engineering services to support customers with long-term, ongoing product design and development expertise. The company was founded by James R. Scapa in 1985 and is headquartered in Troy, MI.
Read More on ALTR:
- Altair to Present at the RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference
- Altair Announces Date of Third Quarter 2023 Financial Results Conference Call
- Altair Enhances Leadership in Optimization Technology by Acquiring OmniQuest
- Altair Engineering acquires OmniQuest, terms not disclosed
