On Monday, Rosenblatt Securities raised its rating for Bentley Systems Inc. (NASDAQ:BSY) shares from Neutral to Buy, adjusting the price target upward to $60.00 from the previous $54.00. The firm anticipates Bentley's Q4 and full-year 2023 results, which are due to be reported on Tuesday, February 27, before the market opens. A conference call is scheduled for 8 am ET following the release of the financial figures.
The upgrade comes as the analyst expects Bentley to post an in-line or slightly better fourth quarter, with a projected 10% growth in Subscription and License revenue.
This growth is attributed to several factors, including the impact of the Infrastructure Investment and Jobs Act (IIJA) funding in the United States, the uptake of E365 subscriptions by enterprises, license expansion in China, and the increasing engagement of new customers through Virtuosity in the small and medium-sized business market segment.
Rosenblatt's unchanged estimates for Bentley's performance are underpinned by these growth drivers, which together contribute to a significant portion of the company's total revenues. The firm's decision to maintain its estimates reflects a positive outlook on Bentley's revenue streams and market position.
In light of the anticipated financial results and the forward valuation into FY25, Rosenblatt has increased its target price, indicating a 15% return potential to the newly set price target.
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