Bentley Systems (BSY) appears to be one of the better positioned industrial and infrastructure software firms, displaying its resilience through changing economic cycles and with little direct exposure to global tariffs, analysts at Oppenheimer said on Thursday in a new research note.
The Oppenheimer analysts raised their rating for Bentley to outperform on Thursday and set a $49 price target for its shares, with the upgrade reversing an Oppenheimer downgrade of the stock to market perform just six weeks ago.
At the time, the analysts cited a lack of catalysts that could help Bentley to take advantage of increased spending on artificial intelligence and data centers. But the arrival of tariffs likely changes that, they said, with the current environment "the one in which we believe you want to own BSY for its relative resiliency."
Some uncertainty remains, they said, with tariffs potentially weighing on decisions by Bentley customers to either begin or continue projects. The company also is relatively dependent on public works spending, with cost-cutting with the US government possibly affecting infrastructure construction, although planned European stimulus programs could offset any domestic downturn, the Oppenheimer analysts said.
The Oppenheimer analysts also nudged their revenue forecast for fiscal 2025 slightly higher to $1.48 billion from $1.475 billion previously, remaining closer to the bottom end of the Wall Street estimates but straddling Bentley's guidance looking for $1.46 billion to $1.9 billion in revenue this year. They also kept their earnings forecast looking for $1.16 per share, in-line with the consensus view.
Price: 40.90, Change: -1.25, Percent Change: -2.97
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