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Investing.com - UBS raised its price target on Autodesk (NASDAQ:ADSK) to $385 from $370 on Friday, while maintaining a Buy rating following what it described as one of the "cleanest" prints in the applications and software-as-a-service sector this earnings season. According to InvestingPro data, Autodesk, currently valued at $67.8 billion, is trading near its Fair Value with an impressive gross profit margin of 92%.
The firm highlighted Autodesk’s second-quarter revenue and billings beats as the strongest in several quarters, with both maintaining adjusted constant currency growth in the low-teens and well into the 20s, respectively.
These strong results led Autodesk to raise its fiscal year 2026 guidance at the high end to 10% from 9% on revenues and to 19% from 18% on billings, both on an adjusted constant currency basis.
UBS noted that Autodesk’s second-quarter EBIT margin of 39% was solid, and the approximately 25 basis points increase to the fiscal year 2026 EBIT margin guidance was "likely good enough."
The investment bank believes Autodesk’s adjusted low-teens constant currency revenue growth combined with expected margin expansion of about 400 basis points from fiscal years 2026 to 2029 supports the case that the company could sustain mid-teens-plus EPS and free cash flow growth over the next couple of years.
In other recent news, Autodesk reported robust fiscal second-quarter results, which have led to several analyst firms adjusting their price targets for the company. Oppenheimer raised its price target to $375, noting steady core revenue growth of 11% and maintaining an Outperform rating. Similarly, RBC Capital increased its target to $380, citing strong results and improved guidance for fiscal year 2026, which boosted confidence in Autodesk’s free cash flow outlook. Stifel also raised its target to $375, highlighting that Autodesk exceeded both guidance and market expectations, prompting an increase in fiscal year guidance. Rosenblatt raised its target to $355 after Autodesk reported a 17% year-over-year revenue growth and a 36% increase in total billings, both surpassing forecasts. Meanwhile, BMO Capital reiterated a Market Perform rating with a $333 target, acknowledging stable growth and strong cash generation despite economic concerns. These developments reflect a positive sentiment among analysts regarding Autodesk’s financial performance and future prospects.
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