Autodesk stock maintains Buy rating at Stifel following Investor Day

Investing.com - Stifel maintained its Buy rating and $375.00 price target on Autodesk (NASDAQ:ADSK) following the company’s Investor Day in San Francisco. The software giant, currently trading at $314.19 and near its 52-week high of $329.09, shows promising potential according to InvestingPro data, with 24 analysts recently revising their earnings estimates upward.

The investment firm noted that Autodesk effectively showcased its near-term and medium-term growth opportunities across its AECO, D&M, and M&E segments as the company targets a market opportunity exceeding $100 billion in coming years.

Stifel highlighted that Autodesk demonstrated its competitive differentiation and emerging artificial intelligence opportunities across each of its business segments during the presentation.

While Autodesk did not provide new quantitative revenue or free cash flow targets, the company had previously announced its fiscal year 2029 operating margin target of 41%. The company did share additional financial insights, including expected gross margin headwinds as cloud business increases, though gross income dollars will continue to grow.

Autodesk also revealed that consumption-based business models will expand over time, stock-based compensation will fall below 10% in coming years, and share count is expected to decline.

In other recent news, Autodesk has been the subject of several analyst ratings and strategic developments. Mizuho reiterated its Outperform rating on Autodesk, with a price target of $375, emphasizing the company’s AI growth and expectations for operating margins to reach 41% by fiscal year 2029. RBC Capital also maintained an Outperform rating, setting a price target of $380, ahead of Autodesk’s upcoming analyst event. Piper Sandler echoed this sentiment by reiterating an Overweight rating with a $373 price target, highlighting Autodesk’s advancements in Vertical AI solutions for various industries.

Additionally, UBS maintained a Buy rating, projecting a price target of $385, as Autodesk introduces a new usage-based pricing model for its Platform Services APIs. This new pricing strategy, set to be implemented by year-end, aims to capitalize on AI-powered automations. These developments come as Autodesk prepares for its 2025 investor day, marking a period of significant transition for the company. Recent changes include a billing transition, responses to an activist shareholder, and the introduction of new executives and transaction models.

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