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On Monday, Baird, a financial services firm, adjusted its stock price target for Autodesk (NASDAQ:ADSK), a software company listed on NASDAQ:ADSK, raising it to $330 from the previous $305. This revision comes with a sustained Outperform rating for the company's stock.
The firm's analyst noted that despite a challenging macroeconomic environment, the feedback from resellers regarding their performance relative to plans remained stable quarter over quarter. Moreover, expectations for the fiscal year 2025, which ends in January, have seen a slight improvement when compared to the previous quarter.
Autodesk's new transaction model also received favorable feedback. The majority of larger partners now view the model positively, which marks an improvement from previous sentiments. This shift in perception is seen as a supporting factor for Autodesk's financial results, potentially positioning them at the higher end of the current guidance ranges.
The analyst further suggested that if Autodesk communicates this positive trajectory effectively, along with reaffirming the anticipated increase in free cash flow (FCF) for fiscal year 2026, the stock is expected to continue performing well as the year comes to a close. The mention of an inflection in FCF is particularly noteworthy for investors looking towards the company's longer-term financial health.
In summary, the updated price target reflects a positive outlook on Autodesk's performance and its strategic initiatives, as interpreted by Baird's analysis of the company's reseller feedback and business model adjustments.
In other recent news, Autodesk reported a 2% increase in revenue and an earnings per share of $2.15 for the second quarter, with a free cash flow of $203 million. This positive financial performance is linked to Autodesk's successful transition to an agency model and a direct customer billing transaction model in North America, leading to a projected 11% increase in its full-year 2025 revenue growth guidance.
Deutsche Bank (ETR:DBKGn) maintained its Hold rating on Autodesk but increased the software company's price target from $280.00 to $330.00. Barclays (LON:BARC) and BMO Capital have reiterated their Overweight and Market Perform ratings respectively, with price targets of $310 and $287.
Meanwhile, Edenor (BCBA:EDNm), an Argentine electricity distributor, reported a 31% year-over-year increase in adjusted EBITDA for the third quarter of 2024, despite falling short of Deutsche Bank's expectations. Deutsche Bank anticipates potential recovery in energy volume for Edenor in 2025 due to stronger macroeconomic activity in Argentina. These are the recent developments for both Autodesk and Edenor.
InvestingPro Insights
Autodesk's recent performance aligns with several key metrics and insights from InvestingPro. The company's impressive gross profit margin of 91.92% for the last twelve months as of Q2 2025 underscores its strong financial position, supporting Baird's optimistic outlook. This is further reinforced by an InvestingPro Tip highlighting Autodesk's "impressive gross profit margins."
The company's revenue growth of 11.38% over the same period, coupled with an EBITDA growth of 27.37%, indicates robust financial health and aligns with the positive reseller feedback mentioned in the article. Additionally, Autodesk's strong return over the last three months, as noted in another InvestingPro Tip, corroborates the analyst's expectation of continued good stock performance.
It's worth noting that Autodesk is trading at a P/E ratio of 60.43, which an InvestingPro Tip describes as "trading at a high earnings multiple." This valuation could be justified by the company's strong performance and positive outlook, as highlighted in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for Autodesk, providing a deeper understanding of the company's financial position and market performance.
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