BMO Capital maintains Autodesk stock rating with stable demand outlook

Published 06/06/2025, 11:02
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On Friday, BMO Capital analysts reiterated their Market Perform rating for Autodesk stock (NASDAQ: NASDAQ:ADSK), maintaining a price target of $333.00. The decision comes after discussions with Autodesk management, who provided insights into the company’s ongoing business transformations and financial expectations. According to InvestingPro data, 23 analysts have recently revised their earnings expectations upward, while the stock’s RSI indicates overbought conditions. With a current market capitalization of $63.8 billion, Autodesk maintains an impressive 92% gross profit margin.

Autodesk’s management indicated that the various business transformations are on track, with expected distortions in financial metrics anticipated to moderate as they move into the fiscal year 2027. Customer demand trends remain stable, reflected in the company’s solid 12.44% revenue growth, though there is a degree of uncertainty. The low end of the updated fiscal year 2026 billings guidance accounts for potential macroeconomic weakness later in the year. InvestingPro subscribers can access 14 additional key insights about Autodesk’s financial health, which currently rates as GREAT according to comprehensive analysis.

The company’s management expressed optimism about medium-term opportunities to increase market share in construction-related workloads. This confidence is attributed to functional improvements in Autodesk’s Build platform and the company’s broader data strategy.

Additionally, while artificial intelligence developments are underway, management believes that any substantial impacts from AI are likely several years away. The firm’s focus remains on leveraging its current capabilities to drive growth in the near term.

Overall, BMO Capital’s reaffirmation of the Market Perform rating reflects a balanced view of Autodesk’s current market position and future prospects.

In other recent news, Autodesk has reported strong first-quarter financial results, with constant-currency revenue growth accelerating to 11% and billings increasing by 22% year-over-year. The company’s profitability also exceeded expectations, with free cash flow reaching $556 million and EBIT margins at 37%. Analysts from various firms have responded positively to Autodesk’s performance. Piper Sandler raised its price target to $361, citing Autodesk’s early momentum and commitment to share buybacks. Meanwhile, Citi increased its price target to $376, maintaining a Buy rating and highlighting the company’s solid growth and margin performance.

DA Davidson adjusted its price target to $305, with a Neutral rating, acknowledging Autodesk’s robust growth and execution while noting a cautious full-year guidance. Stifel analysts also raised their price target to $350, maintaining a Buy rating, following Autodesk’s strong financial results that surpassed expectations. Despite slight adjustments to billing targets due to currency conversion and transaction model changes, Autodesk’s outlook remains positive, with analysts expressing confidence in its ability to maintain growth and operational efficiency. The company’s strategic initiatives, including the transition to a transactional model and go-to-market restructuring, have been recognized as contributing to its improved margin efficiency.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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