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Tuesday, Autodesk shares continued to be rated a Hold by Berenberg, with the firm reiterating its $299.00 price target on (NASDAQ:ADSK). According to InvestingPro, 18 analysts have recently revised their earnings estimates upward for the upcoming period, with price targets ranging from $275 to $430. Berenberg’s analysis followed Autodesk’s Q4 FY 2025 results, which were released on February 28, revealing an 11.6% year-over-year revenue growth, or 12.2% in constant currency terms, meeting consensus expectations. The company maintained impressive gross profit margins of 91.96%, while the Architecture, Engineering, and Construction (AEC) segment was particularly strong, showing a 15.2% year-over-year increase.
Autodesk also announced a restructuring program alongside its financial results, aiming to enhance profitability. The company has projected 8-9% constant currency organic revenue growth for FY 2026, which is lower than the market’s previous double-digit growth forecasts. Despite the softer revenue guidance, the outlook for profitability appears positive due to the restructuring initiatives. With a current market capitalization of $53.61 billion and trading at a P/E ratio of 48.72, detailed analysis from InvestingPro suggests the stock is currently trading below its Fair Value, offering potential upside for investors looking at comprehensive valuation metrics.
The newly appointed CFO, Janesh Moorjani, has taken steps to revise the company’s financial strategy by removing Autodesk’s mid-term guidance. An updated framework is anticipated to be presented during a financial analyst day in the third quarter of CY 2025. Berenberg has acknowledged the necessity of removing the outdated mid-term framework and sees potential in Autodesk’s efforts to improve profitability. However, the firm anticipates that Autodesk stock will likely remain range-bound until the new mid-term targets are established, leading to the decision to maintain the Hold rating on the shares. For deeper insights into Autodesk’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers over 1,400 top US stocks.
In other recent news, Autodesk has reported its fourth-quarter fiscal year 2025 results, which have been met with varying assessments from different analyst firms. Stifel analysts, despite lowering their price target to $350, maintained a Buy rating, citing Autodesk’s effective execution and transition to a new business model. UBS, on the other hand, raised its price target to $370, also maintaining a Buy rating, and highlighted the company’s margin improvements and strategic restructuring efforts. Meanwhile, RBC Capital retained its Outperform rating with a $345 price target, expressing confidence in Autodesk’s ability to achieve approximately 10% growth and potentially exceed the Rule of 50 benchmark.
BMO Capital Markets maintained a Market Perform rating with a $324 price target, noting the challenges posed by the macroeconomic environment but acknowledging Autodesk’s proactive restructuring steps. DA Davidson increased its price target to $285, maintaining a Neutral rating, and pointed out the company’s strategic workforce reduction and growth in the Autodesk Construction Cloud segment. Autodesk’s restructuring initiative, which includes a 9% reduction in force, is aimed at optimizing operations and enhancing profit margins. The company has also provided guidance for fiscal year 2026, predicting higher-than-anticipated billings growth and operating margin expansion. These developments reflect Autodesk’s ongoing efforts to navigate challenges and capitalize on opportunities in the current economic landscape.
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