Skip to main content

Market Overview

3 Reasons Why Goldman Sachs Turned Bullish On Ansys

3 Reasons Why Goldman Sachs Turned Bullish On Ansys

Shares of engineering simulation software company ANSYS, Inc. (NASDAQ: ANSS) are likely to outperform, according to Goldman Sachs. 

The Analyst

Analyst Gabriela Borges upgraded Ansys from Neutral to Buy and increased the price target to $207.

The Thesis

Ansys is the most insulated from long-term competitive threats from large technology computing platforms such as Microsoft Corporation (NASDAQ: MSFT),, Inc. (NASDAQ: AMZN) and Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG), Borges said, citing conversations with customers, channel partners and consultants.

Borges attributed her forecast for continued outperformance to three factors: 

  • Company-specific efforts to improve positioning and productivity.
  • A positive secular outlook supported by new price points that aid increased penetration, the tie-up with PTC Inc (NASDAQ: PTC) and the long-term opportunity presented by safety-critical machine learning applications.
  • The potential for margin improvement after troughing in 2018. 

Ansys has enacted a sales force realignment for targeted improvement in key market segments, an increased technical salesforce and hiked channel investments, the analyst said. 

Goldman Sachs is 3 percent above the Street in its EPS estimate for fiscal 2018 and 6 percent above consensus for fiscal 2019 EPS.

Although the stock appears expensive, Borges said its premium to peers on a next-12-month free cash flow basis is in-line with historical averages. The multiples will hold if estimates are upwardly revised, she said. 

The Price Action

Ansys shares were up more than 3 percent at $182.10 at the time of publication Wednesday.

Related Links:

Lightning Round: Jim Cramer Weighs In On Ford, Shake Shack And More

Don't Get Caught Up In Tech ETF Fears

Photo by Tmilnthorp/Wikimedia. 

Latest Ratings for ANSS

Feb 2021RBC CapitalMaintainsSector Perform
Feb 2021Credit SuisseMaintainsOutperform
Jul 2020BarclaysMaintainsUnderweight

View More Analyst Ratings for ANSS
View the Latest Analyst Ratings


Related Articles (ANSS)

View Comments and Join the Discussion!

Posted-In: Gabriela Borges Goldman SachsAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

FSRMorgan StanleyMaintains40.0
MEDDA DavidsonMaintains302.0
VICRBWS FinancialMaintains120.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at