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ANSS’s share price is up more than 20% at $364 per share at the time of writing.
Bloomberg said its sources told them the engineering software provider is working with advisers, although no final decision has been made and the Pennsylvania-based business could choose to remain independent.
Following the report, analysts at Oppenheimer, who have an Outperform rating and a $320 price target on the stock, said that with a market cap north of $25 billion, they expect a narrow pool of potential candidates. They explain that recent large software M&A “appear less bound to valuation ratios” due to volatile pre and post-pandemic comps, but rather 2021 levels, which would mean a price of $400 per share is “in play.”
“We see strategic candidates as more likely than a financial partner,” the analysts wrote in a note to clients. “Investors will likely see EDA leaders CDNS and SNPS as potential acquirers, with larger Industrial Design peers (ADSK, DSY), and multi-Industrials that have shown an appetite for software such as SIE, HON, GE, etc also candidates.”
Oppenheimer views Ansys (NASDAQ:ANSS)’ position as a pure play simulation leader, minimizing potential integration hurdles.
