Ansys takeover price of $400 per share ‘in play,’ says Oppenheimer

Oppenheimer analyst Ken Wong expects Ansys (ANSS) shares to trend higher following a Bloomberg report that the company is evaluating takeover interest. However, with a market capitalization north of $25B, the firm expects a “narrow pool of potential candidates.” It sees strategic candidates as more likely than a financial partner. Investors will likely see Cadence Design (CDNS) and Synopsys (SNPS) as potential acquirers, with larger industrial design peers Autodesk (ADSK) and Dassault, and multi-Industrials that have shown an appetite for software such as Siemens, Honeywell (HON) and General Electric (GE), also candidates, the analyst tells investors in a research note. Oppenheimer views Ansys’ position as a pure play simulation leader minimizing potential integration hurdles. Recent large software deals appear less bound to valuation ratios due to volatile pre- and post-pandemic comps, but rather 2021 levels, which would put a range of $400 per share for Ansys “in play,” the firm contends. It keeps an Outperform rating on Ansys with a $320 price target. The stock in premarket trading is up 2% to $310.05.