Ansys higher on Wedbush upgrade

|By:, SA News Editor

Wedbush's Steve Koenig has upgraded Ansys (ANSS +2.1%) to Outperform, and raised his PT to $88 from $86.

Koenig: "We believe a pullback in ANSS shares over the last several weeks and months provides a rare opportunity to own this competitively advantaged and highly profitable company at reasonable multiples." He notes shares are only at a 5% premium to the mediian forward P/E for software firms, well below their tradition 25%-30% premium.

Koenig also says he's more optimistic about the simulation software vendor's 2014 outlook following its investor day, and signs of improvement in North American/European software demand.