Bentley Systems stock price target raised to $59 from $56 at KeyBanc
Investing.com
Published Jul 07, 2025 10:10AM ET
Investing.com - KeyBanc raised its price target on Bentley Systems Inc . (NASDAQ:BSY) to $59.00 from $56.00 on Monday, while maintaining an Overweight rating on the infrastructure software company's stock. The stock is currently trading near its 52-week high of $55.50, with InvestingPro data showing impressive gross profit margins of 81.2%.
The price target increase reflects KeyBanc's "incremental confidence" in Bentley's pricing power and what the firm describes as its "growth build."
KeyBanc maintains that Bentley's long-term growth framework, along with consistent operating margin expansion to 35-40%, supports a premium valuation compared to industrial software peers.
The new price target is based on 41.5x 2026 EV/FCF (enterprise value to free cash flow), or 39x after adjusting for the double-counting of convertible debt in enterprise value calculations.
KeyBanc's analysis supports its continued Overweight rating on Bentley Systems stock, indicating the firm expects the shares to outperform the market.
In other recent news, Bentley Systems reported strong financial results for the first quarter of 2025. The company exceeded expectations with earnings per share of $0.35, surpassing the anticipated $0.30, and revenue reaching $371 million against a forecast of $366.41 million. Bentley Systems experienced a 10% year-over-year increase in total revenues, with subscription revenues, which comprise 92% of the total, growing by 11%. Additionally, Bentley Systems declared a quarterly cash dividend of $0.07 per share for the second quarter of 2025, scheduled for payment on June 12, 2025. This dividend aligns with the company's financial strategy and commitment to shareholder returns, though future dividends remain contingent on various factors. The company introduced new AI-driven solutions and expanded its digital twin technology, indicating a strategic focus on technological advancement. Bentley Systems maintains a positive outlook for the rest of 2025, expecting continued growth in Annual Recurring Revenue and margin expansion. The company also emphasized the importance of infrastructure investment trends in its strategic initiatives.
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