2023-08-09 09:13:00 ET
Bentley Systems ( NASDAQ: BSY ) fell ~11% Wednesday pre-market after Wolfe Research downgraded the engineering software solutions provider on narrowed growth guidance.
The agency downgraded the company to Peer Perform from Outperform.
Wolfe Research said the company reported Q2 results ahead of consensus, but narrowed the FY23 annual recurring revenue growth guidance range.
The company had said it is narrowing its 2023 ARR growth outlook to a range of 12% to 13% by virtue of the momentum underlying a strong H1, offset by lower expectations for programmatic acquisition contributions this year, and particularly by the business model shift in China due to prevailing geopolitical concerns, according to the Q2 earnings report.
The rating contradicts with the average sell-side analyst rating of Buy, with a price target of $57.36. The stock is currently trading at $50.65.
Seeking Alpha analysts and the Quant Rating system give the stock a Hold rating.
Here are some recent analyst reports on Bentley Systems:
- Bentley Systems: A Lot Of Uncertainties With The Upcoming Earnings, Reiterate Hold
- Bentley Systems Is Well Positioned For U.S. Infrastructure Spending Ramp
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Bentley Systems fall after Wolfe Research downgrades on narrowed growth guidance