In a report released yesterday, Michael Funk from Bank of America Securities reiterated a Hold rating on Bentley Systems (BSY – Research Report), with a price target of $59.00.
Michael Funk’s rating is based on Bentley Systems’ steady performance amid certain challenges. The company reported results that aligned with expectations and provided guidance for fiscal year 2025 that suggested modest growth in annualized recurring revenue and margin expansion. However, foreign exchange pressures and concerns about growth in China slightly dampened the outlook, leading to a more cautious stance.
Despite positive trends in net recurring revenue and strength in the EMEA region, the potential for significant share price appreciation appears limited. While there are constructive signals regarding U.S. government spending and possible benefits from new mine exploration, these factors are not seen as strong enough catalysts to warrant an upgrade. Consequently, the Hold rating reflects a balanced view of the company’s prospects, acknowledging both its strengths and the external pressures it faces.
BSY’s price has also changed moderately for the past six months – from $50.860 to $44.620, which is a -12.27% drop .