Rosenblatt trims target, holds Buy
Rosenblatt has lowered its price target for Bentley Systems Inc. (BSY) to $50 from $58 but left its Buy rating unchanged. The adjustment follows broader weakness in software equities and multiple compression among Bentley's comparable companies, according to the firm.
Market position and near-term expectations
The shares trade around $32.20, close to a 52-week low of $30.96. Some market analysis included in public commentary suggests the stock may be undervalued at current levels. Rosenblatt expects Bentley to deliver fourth-quarter and full fiscal year 2025 results in line with consensus when it reports on February 26, 2026, before the market opens.
For the upcoming quarter, Rosenblatt projects subscription revenue growth of 8%, and it models 11% subscription growth for the fiscal year ending December 31. The firm also noted Bentley's strong profitability metrics, pointing to gross profit margins of 81% over the last twelve months.
Estimates and growth drivers
Analyst estimates from Rosenblatt for fiscal years 2025 through 2027 were left unchanged. The firm cited a steady level of demand and a stable competitive environment for infrastructure-focused engineering tools as a basis for those projections. Rosenblatt also expects the quarter to receive a tailwind from upselling within the E365 subscription program and continued additions of customers to Bentley's Virtuosity channel.
The firm expressed a constructive view on adoption of AI capabilities in civil engineering software, observing that Bentley is integrating AI-driven features into its digital twin platform. Rosenblatt further referenced demand for engineering tools tied to U.S. infrastructure activity as supportive for the company's addressable market.
Company financial moves and product expansion
In recent corporate finance activity, Bentley repaid $678 million in convertible notes at maturity using a combination of cash on hand and $610 million drawn from previously unused revolving credit facilities. The company still has $575 million of 0.375% convertible senior notes outstanding that mature in mid-2027.
Bentley has also broadened its Asset Analytics portfolio through acquisitions of Talon Aerolytics and Pointivo technology. According to company disclosures, these additions expand Bentley's capabilities for telecommunications and electric utilities customers and are intended to support digital workflows for global 5G deployments and grid modernization efforts.
Analyst coverage shows mixed views
Other brokerages have taken differing stances. BMO Capital initiated coverage with an Outperform rating and a $48.00 price target, citing what it described as durable growth opportunities. By contrast, Piper Sandler downgraded its rating on Bentley from Overweight to Neutral and reduced its price target to $45.00. Piper Sandler's revision reflected its view that organic annual recurring revenue (ARR) growth, which it said ran roughly 12% annually from 2022 through 2025, may moderate to about 10% in 2026.
These developments capture a combination of proactive financial management and divergent analyst perspectives on the sustainability and pace of Bentley's organic growth.
What to watch
- February 26, 2026 earnings release for Q4 and fiscal 2025 results.
- Execution on E365 upsell initiatives and Virtuosity customer growth.
- Integration and commercial traction from Talon Aerolytics and Pointivo technologies in telecoms and utilities workflows.