Piper Sandler Cuts Bentley Systems Target to $42, Sees 15-20% Services Growth
Piper Sandler lowered Bentley Systems’ target to $42 from $45 while maintaining a Neutral rating and cited FY26 guidance of 10.5%-12.5% annual recurring revenue growth. The firm forecasts 15%-20% services revenue growth in 2026 after eight quarters of decline and noted completion of deleveraging with a 3% share count reduction.
1. Piper Sandler Revises Price Target
Piper Sandler lowered its Bentley Systems price target to $42 from $45 and maintained a Neutral rating, citing modest valuation upside following the latest guidance update.
2. Fiscal 2026 Guidance
Bentley introduced fiscal 2026 ARR growth guidance of 10.5%-12.5%, with roughly 40 basis points expected to come from programmatic acquisitions completed in 2025, reflecting continued subscription momentum.
3. Services Segment Outlook
The services segment, which has underperformed for nearly eight quarters, is projected to rebound with 15%-20% revenue growth in 2026, driven by improved market demand and integration with Bentley’s core offerings.
4. Financial Position and Deleveraging
Bentley achieved a 35% free cash flow margin in 2025, retired its 2026 convertible debt to reduce fully diluted shares by about 3%, and reached its targeted 2x leverage range to support future acquisitions.