Update (9:45 a.m.): Updated with Thursday market open information.
NEW YORK (TheStreet) -- Wedbush upgraded Ansys (ANSS) to "outperform" from "neutral" and set an $88 target price. The firm noted the stock has pulled back, but the software demand environment appears to be improving in North America and Europe.
The stock was up 0.46% to $74.34 at 9:45 a.m. on Thursday.
Separately, TheStreet Ratings team rates ANSYS INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ANSYS INC (ANSS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- ANSYS INC has improved earnings per share by 35.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ANSYS INC increased its bottom line by earning $2.59 versus $2.14 in the prior year. This year, the market expects an improvement in earnings ($3.33 versus $2.59).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Software industry average. The net income increased by 35.4% when compared to the same quarter one year prior, rising from $56.06 million to $75.93 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.9%. Since the same quarter one year prior, revenues slightly increased by 6.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ANSS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, ANSS has a quick ratio of 2.32, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $84.96 million or 22.09% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.11%.
- You can view the full analysis from the report here: ANSS Ratings Report