PMTC shares have risen 10% after the company lowered its revenue
guidance for the Jun-Q and FY 10 (Sep.) two weeks ago. Although
the euro has strengthened recently, we believe concerns about
sovereign debt and a slower economy in the eurozone persist. We
think PMTC will have difficulty maintaining its software license
sales momentum, which has been aided by the closing of numerous
large deals and favorable foreign currency exchange. We believe
both factors will become less prominent in the next few quarters.
We keep our target price at $16.