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 key considerations. Ansys reported a solid first-quarter performance with a 10% increase in revenue, but the variability in revenue recognition due to accounting standards makes it challenging to predict consistent growth. The company’s annual contract value (ACV) showed modest growth of 2% for the quarter, though the trailing 12-month ACV increased by 14%, indicating some positive momentum.
Another factor influencing the Hold rating is the pending acquisition by Synopsys, valued at approximately $35 billion. This acquisition introduces uncertainty about the future strategic direction and integration process, which can impact Ansys’s performance. Additionally, the company chose not to host an earnings call due to the acquisition, limiting transparency and investor communication. These elements combined suggest a cautious approach, leading to the Hold rating.
According to TipRanks, Becker is a 4-star analyst with an average return of 5.5% and a 51.70% success rate. Becker covers the Technology sector, focusing on stocks such as Manhattan Associates, Sapiens, and Clearwater Analytics Holdings.