Software company Autodesk (ADSK) is exploring the possibility of acquiring Boston-based rival PTC (PTC) in a cash-and-stock deal, according to a report from Bloomberg, which cited people familiar with the matter. While discussions are ongoing, no final decision has been made, and Autodesk may still decide not to pursue the acquisition. The report also notes that PTC is attracting interest from other software companies in the industrial and engineering space.
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It is worth noting that PTC offers a suite of software tools that support the entire lifecycle of a product, from design to manufacturing to supply chain management. Its products are used by engineers to create everything from electronics to heavy machinery, such as wind turbines. With more companies looking to use artificial intelligence in order to modernize their product development pipelines, PTC has seen demand for its products grow.
Similarly, Autodesk’s portfolio of cloud-based design tools is also gaining traction across sectors such as architecture, engineering, and animation, with AI investments driving customer adoption even further. Following the news, Autodesk shares dipped about 2% in after-hours trading, though they remain up 4% year-to-date. Moreover, neither Autodesk nor PTC responded to media requests for comment. However, the potential acquisition, if it moves forward, could signal a major shift in the engineering software industry as firms look to expand their capabilities.
Is ADSK Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on ADSK stock based on 16 Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ADSK price target of $344.85 per share implies 12.2% upside potential.
