PTC price target raised to $245 from $192 at KeyBanc

KeyBanc raised the firm’s price target on PTC (PTC) to $245 from $192 and keeps an Overweight rating on the shares. The firm notes the company reported solid Q3 results, beating on C.C. ARR and free cash flow, and is raising the low end of the full-year C.C. ARR growth guide by 1 pt, given signs of macro stabilization. More importantly, however, was management’s incremental confidence in hitting the $1B free cash flow target in FY26, given more favorable FX and potential cash tax tailwinds from the OBBBA. While KeyBanc is not quite giving the company full credit on the $1B free cash flow yet, it is maintaining its above-consensus free cash flow estimates and sees potential upside to FY26 numbers.