ALTR

Altair Engineering, Inc.

TMT, Software


Presented:01/18/2024
Price:$85.16
Cap:$6.95B
Current Price:$94.22
Cap:$8.00B

Presented

Date01/18/2024
Price$85.16
Market Cap$6.95B
Ent Value$4.94B
P/E RatioN/A
Book Value$7.79
Div Yield0%
Shares O/S81.66M
Ave Daily Vol374,276
Short Int7.40%

Current

Price$94.22
Market Cap$8.00B
Altair Engineering, Inc. engages in the provision of software and cloud solutions for product design & development, high performance cloud computing, and data intelligence. It operates through the following segments: Software and Client Engineering Services. The Software segment includes a portfolio of software products, as well as solvers and optimization technology products, modelling and visualization tools. The Client Engineering Services segment engages in the provision of client engineering services to support customers with long-term, ongoing product design and development expertise. The company was founded by James Ralph Scapa in 1985 and is headquartered in Troy, MI.

Publicly traded companies mentioned herein: Altair Engineering Inc (ALTR), ANSYS Inc (ANSS), Synopsys Inc (SNPS)

Highlights

The presenter is long shares of Altair (ALTR) and expects the company will grow revenue above the market while improving margins, thus driving a rerate in valuation. With more companies doing simulations now, the presenter believes the company should grow faster than the industry and sees no reason that Altair can not close the gap with ANSYS on EBITDA margins. This should lead to the stock rerating closer to the M&A multiple applied to ANSS, leading to a price of $110-$115 a couple of years out for a 15% IRR.

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Idea Discussion

Commentor 1 - 2 weeks ago

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