BSY: Agentic AI Will Drive Future Productivity And Share Repurchase Upside

Bentley Systems' analyst price target has been reduced by $5 to $51, as analysts balance solid Q3 performance and promising agentic AI initiatives with what they see as more limited near term share price appreciation potential compared with the broader software sector.

Analyst Commentary

Analysts are divided on Bentley Systems, with recent research highlighting both supportive long term fundamentals and a more measured stance on near term valuation following the recent share price performance.

Bullish Takeaways

• Bullish analysts view the solid Q3 results as confirmation that Bentley is executing well on its growth strategy, supporting expectations for continued revenue expansion.
• Recent upgrades and positive ratings reflect confidence that the company can convert its agentic AI investments into tangible productivity gains for civil engineering and E&C customers, reinforcing its competitive positioning.
• Higher price targets from bullish analysts, sitting above the current revised levels, suggest they see room for multiple expansion as AI driven initiatives scale and recurring revenue visibility improves.
• New coverage with constructive views on Bentley’s technology roadmap is interpreted by bullish analysts as a sign that the broader market is still underappreciating its long term structural growth opportunity.

Bearish Takeaways

• Bearish analysts maintain more cautious stances on the shares, citing limited upside versus other software names after the recent rerating, even as fundamentals remain solid.
• The reduction of the price target to $51, including from major firms like JPMorgan, underscores concerns that the current valuation already discounts a significant portion of the expected growth.
• Equal Weight style ratings point to skepticism around near term share price appreciation, with some seeing better risk reward profiles elsewhere in their software coverage universe.
• Cautious analysts also highlight execution risk around scaling agentic AI offerings, noting that the timing and magnitude of incremental monetization remain uncertain relative to current expectations.

What's in the News

• Bentley Systems authorized a new share repurchase program of up to $500 million in Class B stock and/or convertible senior notes, to run through December 31, 2028 (company buyback announcement).
• The Board of Directors approved the latest buyback plan on November 21, 2025, reinforcing management’s capital return commitment (board authorization filing).
• Between July 1 and September 30, 2025, Bentley repurchased 284,413 shares for $15 million, bringing total repurchases under the May 11, 2022 program to 3,646,313 shares for $157.58 million (buyback tranche update).
• Bentley and EARTHBRAIN Co. Ltd. formed a strategic partnership to embed Bentley’s open, AI powered digital twin technology into EARTHBRAIN’s Smart Construction suite. The collaboration will initially target the Japanese market, with potential for global expansion (client partnership announcement).
• The company introduced Bentley Infrastructure Cloud Connect, a new connected data environment built on its iTwin platform to unify engineering, operational, and geospatial data. General availability is planned for December 2025 (product launch announcement).

Valuation Changes

• Discount Rate increased slightly from 8.68% to approximately 8.73%, indicating a slightly more conservative stance on risk and required returns.
• Revenue Growth remained effectively unchanged at around 9.32%, signaling stable expectations for Bentley Systems' top line expansion.
• Net Profit Margin stayed essentially flat at roughly 24.0%, reflecting consistent profitability assumptions in the valuation model.
• Future P/E rose slightly from about 50.62x to 50.70x, implying marginally higher expectations for Bentley Systems' earnings multiple over the forecast horizon.
• Fair Value held steady at $58.21 per share, suggesting that the small parameter adjustments do not materially alter the intrinsic value estimate.