Street Calls of the Week
Investing.com - UBS has reiterated its Buy rating and $385.00 price target on Autodesk (NASDAQ:ADSK), aligning with the broader analyst consensus. According to InvestingPro data, 24 analysts have recently revised their earnings estimates upward, with price targets ranging from $271 to $430. The company, currently trading near its 52-week high at $321.27, introduces a new usage-based pricing model for its Platform Services APIs.
The new pricing structure will take effect at the end of the year and represents Autodesk’s strategy to monetize AI-powered automations and agents, according to UBS.
Under the new model, usage will remain free up to certain thresholds, after which customers will need to purchase subscription plans for additional usage.
UBS notes that these thresholds appear to be specifically designed so that primarily AI workflows would trigger payment requirements beyond the free tier.
The firm also indicates that questions remain about whether third-party integrations and applications built on Autodesk’s platform could potentially be monetized through this new pricing model as well.
In other recent news, Autodesk has been the focus of several analyst updates and strategic partnerships. Macquarie increased its price target for Autodesk to $380, maintaining an Outperform rating, citing strong second-quarter performance as a key factor. Stifel also maintained its Buy rating with a $375 price target after Autodesk showcased innovations at its annual conference in Nashville. KeyBanc reiterated an Overweight rating with a $365 target, highlighting mixed results in construction and manufacturing due to inflation and labor shortages.
Additionally, Autodesk has entered a multi-year partnership with the Kraft Group, becoming the Official Design and Make Platform for the New England Patriots. This collaboration will see the implementation of Autodesk Construction Cloud for managing infrastructure projects at Gillette Stadium. These developments reflect Autodesk’s ongoing engagement with various sectors and its commitment to innovation.
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