) to buy from neutral and sets an $8 12-month target.
Analyst Sasa Zorovic says the company is benefiting from several factors. He says the company has an integrated product suite, architected it around common platform and database. This enables a seamless transition path for customers from lower-end to higher-end products.
He says globalization and offshoring of design engineering is increasing demand for PLM and CAD products. He notes customer satisfaction is at an all-time high (as reported by management).
Zorovic says the company has doubled its cash position over the last two years and has no debt. He ups his 29 cents fiscal 2005 (ending September) earnings per share estimate to 30 cents and his 31 cents fiscal 2006 earnings per share estimate to 38 cents.