Stock Price & Analysis

Sell ALTR as it is nearing its acquisition price of $113 with limited upside. Hold or sell as technical indicators show no strong buy signal.

Price Prediction for ALTR Stock in 2025

ALTR stock is expected to trade between $110 and $115 in 2025.
The stock is currently priced at $110.78 as of March 11, 2025, and is nearing a key resistance level at $113, driven by its acquisition by Siemens.
Technical indicators suggest moderate growth potential, supported by a 66% rating from the P/B Growth Investor model, though upside may be limited by current valuations.

The S1 support level for ALTR Stock is $110.9 ,The R1 resistant level for ALTR Stock is $111.63.

As of the end of day on 2025-03-14, the price of ALTR Stock was $111.79.

The target price for ALTR Stock according to analyst rating is 113.00, with the highest price target at 113.00 and the lowest at 113.00. Analysts have a Hold rating on ALTR Stock overall.

The market cap of ALTR is $9.5B.

Analysis and Insights

To determine if ALTR is overvalued, we analyze its valuation metrics, recent news, and analyst sentiment.

Valuation Metrics:

ALTR's valuation metrics are elevated compared to industry averages:

• P/E Ratio: 114.08 (Q3 2024) and 154.47 (Q4 2024), indicating a premium relative to earnings.
• EV/EBITDA: 12.73 (Q3 2024) and 14.44 (Q4 2024), suggesting a high valuation relative to earnings.
• Price-to-Sales (PS): 9.69 (Q3 2024) and 10.89 (Q4 2024), reflecting a premium for revenue.
• Price-to-Book (PB): 12.73 (Q3 2024) and 14.44 (Q4 2024), indicating a significant premium to book value.

Recent News and Developments:

• Acquisition by Siemens: ALTR agreed to be acquired by Siemens for $113 per share, a 1.14% upside to the current price of $110.78. This deal values ALTR at $10.6 billion, reflecting strong market confidence in its growth prospects.
• Collaboration with Moya Aero: ALTR partnered with Moya Aero to enhance eVTOL and UAV development, leveraging its HyperWorks platform, showcasing its commitment to innovation and growth in aerospace.

Analyst Sentiment:

Analysts have maintained a Hold rating on ALTR, with a price target of $113, reflecting a modest upside of 1.14%. This suggests a balanced view of its growth potential and current valuation.

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Conclusion:

ALTR appears overvalued based on its high P/E, EV/EBITDA, PS, and PB ratios. While its acquisition by Siemens and strategic partnerships highlight its growth potential, the current valuation may not justify immediate investment. Investors should consider waiting for a price correction or further growth justification.

Altair Engineering Inc. is a computational science and artificial intelligence company. The Company provides software and cloud solutions in simulation, high-performance computing (HPC), data analytics and artificial intelligence (AI). The Company operates through two segments: Software and Client Engineering Services. The Software segment includes software, software services, and software-related services. The software component of this segment includes ITS portfolio of software products, including ITS solvers and optimization technology products, HPC software applications and hardware products, modeling and visualization tools, data analytics and analysis products, Internet of things (IoT) platform and analytics tools as well as support and the complementary software products that offer through its Altair Partner Alliance (APA). The Client Engineering Services segment provides client engineering services to support its customers with long-term, ongoing expertise.

The price prediction for ALTR stock by 2030 is approximately $125 per share. This forecast is supported by the company's strong fundamentals, including its high rating (66%) using the P/B Growth Investor model, indicating sustained growth potential. The acquisition by Siemens at $113 per share and collaborations like the one with Moya Aero further enhance ALTR's growth prospects in the aerospace sector.

ALTR has a total of 3200 employees.