PTC's Moat Supported by Strong Switching Costs

PTC operates in the high-end computer-assisted design software market, but we view this market as mature and don’t foresee significant top-line growth in this area. PTC’s foray into growth areas such as the Internet of Things, augmented reality, and midmarket CAD, on the other hand, will significantly add growth to the top line, in our view, as we expect PTC’s revenue mix to shift significantly to these areas over the next 10 years.