Stock Price & Analysis

Analysis and Insights

Technical Analysis:

Bentley Systems (BSY) has shown a bearish trend recently, with the stock price dipping below key support levels. The Relative Strength Index (RSI) is at 30.11, indicating the stock is oversold. The Fibonacci support levels suggest potential buying opportunities around 39.71.

Fundamental Analysis:

The company reported strong Q4 results with a 12% year-over-year ARR growth and 90% of revenues from subscriptions, indicating stable cash flows. Despite challenges in China, the leadership changes and strategic acquisitions position the company for long-term growth.

Analyst Sentiment:

Analysts are predominantly bullish, with a consensus rating of Strong Buy. Price targets range from $57 to $65, suggesting significant upside potential.

Valuation:

The stock's valuation metrics show room for growth, with a forward P/FCF of 33, aligning with its growth prospects.

Conclusion:

BSY stock is undervalued with positive catalysts. Consider buying on dips, especially near support levels.

Price Prediction for BSY Stock in 2025

BSY stock is expected to trade between $38 and $48 in 2025.
The stock is currently oversold with an RSI of 30.11, suggesting potential upside.
BSY's strong ARR growth and subscription revenue stability support a bullish outlook despite near-term challenges in China.

The S1 support level for BSY Stock is $40.42 ,The R1 resistant level for BSY Stock is $43.87.

As of the end of day on 2025-03-17, the price of BSY Stock was $42.91.

The target price for BSY Stock according to analyst rating is 56.50, with the highest price target at 62.00 and the lowest at 42.00. Analysts have a Moderate Buy rating on BSY Stock overall.

The market cap of BSY is $12.6B.

Analysis and Insights

Bentley Systems (BSY) appears to be overvalued based on its current financial metrics and market valuation. Here's a concise analysis:

1. High Valuation Multiples:

   • The stock trades at a high P/E ratio compared to industry peers, indicating elevated market expectations.
   • The EV/EBITDA ratio is also elevated, suggesting investors are pricing in significant future growth.

2. Revenue Growth:

   • While Bentley has shown steady revenue growth, the pace has slowed recently, raising questions about whether it can justify its premium valuation.

3. Profitability:

   • Net income margins have been inconsistent, and the company's high debt-to-equity ratio introduces financial risk.

4. Market Sentiment:

   • Recent stock price declines (-4.37% on the last trading day) and mixed analyst sentiment suggest uncertainty about its ability to meet growth expectations.

In conclusion, Bentley Systems' high valuation multiples and slowing growth momentum indicate that the stock may be overvalued at current levels. Investors should wait for a price correction or clearer signs of sustained growth before considering a purchase.

Bentley Systems, Incorporated is an infrastructure engineering software company. The Company offers solutions for enterprises and professionals across the infrastructure lifecycle. Its software enables digital workflows across engineering disciplines, across distributed project teams, and from offices to the field. Its offerings are powered by the iTwin Platform for infrastructure digital twins, include MicroStation and Bentley Open applications for modeling and simulation, Seequent’s software for geoprofessionals, and Bentley Infrastructure Cloud encompassing ProjectWise for project delivery, SYNCHRO for construction management, and AssetWise for asset operations. Its engineering and geoprofessional applications are primarily cloud-connected desktop modeling and simulation applications. Its software solutions are used by professionals, and organizations of every size, for the design, construction, and operations of roads and bridges, rail and transit, and water and wastewater, others.

The predicted price range for BSY stock by 2030 is between $65 and $85. This forecast is based on the company's strong recurring revenue growth, strategic leadership appointments, and investments in AI and asset analytics, which position it for sustained expansion in the infrastructure software sector.

BSY has a total of 5200 employees.