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Strong Buy Rating for Bentley Systems Driven by Impressive Financial Performance and Favorable Market Conditions

Strong Buy Rating for Bentley Systems Driven by Impressive Financial Performance and Favorable Market Conditions

William Blair analyst Dylan Becker has maintained their bullish stance on BSY stock, giving a Buy rating on July 30.

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Dylan Becker has given his Buy rating due to a combination of factors including Bentley Systems’ strong financial performance and favorable market conditions. The company reported impressive second-quarter results, with subscription revenue and constant-currency annual recurring revenue (ARR) both increasing by 12%, and operating margins reaching 34%, all surpassing expectations.
Becker highlights the sustained global demand for infrastructure projects, which is bolstered by positive long-term sentiment and the growth of civil project backlogs. Additionally, the industry’s engineering capacity gaps are driving a push towards digitization, with stakeholders investing more in software tools to enhance productivity. The management’s reaffirmation of its 2025 outlook, indicating durable double-digit ARR growth and margin leverage, further supports the Buy rating. Overall, the emphasis on infrastructure investment and the engineering capacity gap are expected to provide a solid foundation for continued growth in ARR and free cash flow in the coming years.

In another report released on July 30, Robert W. Baird also maintained a Buy rating on the stock with a $64.00 price target.

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