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On Friday, BMO Capital Markets maintained its Market Perform rating for Autodesk (NASDAQ:ADSK) shares with a steady price target of $324.00. According to InvestingPro data, analyst targets for the stock range from $285 to $430, with the company currently trading at $272.02. The firm’s analysis acknowledges the various challenges the company faces, including a difficult macroeconomic environment that hinders near-term growth. Despite these issues, BMO Capital highlighted Autodesk’s proactive steps in addressing expenses and margins, notably through a recently announced restructuring plan. The company maintains impressive gross profit margins of 92%, though InvestingPro analysis indicates it’s currently trading at high earnings and EBITDA multiples relative to peers.
Daniel Jester of BMO Capital provided insights into the company’s fourth-quarter performance, noting it largely met expectations. The new Chief Financial Officer’s (CFO) decision to step away from the long-term growth framework was also mentioned as a significant development. InvestingPro data shows Autodesk maintains a strong financial health score of GOOD, with revenue growing at 11.5% year-over-year. According to Jester, while the broader economic backdrop continues to act as a barrier to growth, Autodesk’s actions suggest a strategic evolution in its business approach.
The analyst’s comments reflect a cautious optimism, as BMO Capital has included Autodesk in its "shopping list" for the year 2025, indicating a willingness to wait and see how the company’s fiscal year 2026 guidance and growth trajectory unfold. This patience is predicated on monitoring the extent of conservatism in Autodesk’s future guidance.
Autodesk’s restructuring initiative is seen as a move to better align the company’s operations with the current economic conditions, potentially improving margins and reducing expenses. The company’s leadership changes, particularly with the new CFO reassessing long-term goals, are also pivotal in navigating through the existing macroeconomic headwinds.
In summary, BMO Capital’s stance on Autodesk remains unchanged, with a Market Perform rating and a price target of $324.00. The firm’s analysis suggests a watchful approach as Autodesk progresses through its business evolution and adjusts to the challenging macroeconomic landscape. Based on InvestingPro’s Fair Value analysis, the stock currently appears slightly undervalued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of this $58.94 billion market cap company.
In other recent news, Autodesk reported its fourth-quarter fiscal year 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $2.29, compared to the forecast of $2.14. Revenue also exceeded predictions, coming in at $1.64 billion versus the anticipated $1.63 billion. Rosenblatt Securities responded by raising Autodesk’s stock price target to $340, maintaining a Buy rating, while KeyBanc Capital Markets increased their target to $335 with an Overweight rating. DA Davidson also adjusted its price target for Autodesk to $285, keeping a Neutral rating. Autodesk’s revenue growth for the quarter was reported at 12% year-over-year, with total billings increasing by 23%. The company announced a worldwide reduction in force of 9% as part of strategic investments in its platform and artificial intelligence. Looking ahead, Autodesk anticipates revenue growth for fiscal year 2026 in the range of 12%-14%, or 8-9% in constant currency, with improved operating margins expected. These developments underscore Autodesk’s ongoing efforts to optimize performance and shareholder value.
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