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On Thursday, Citi raised its price target for Autodesk (NASDAQ:ADSK) shares to $358 from the previous $325, while maintaining a Buy rating on the stock. The adjustment follows a reseller survey that indicated improved quota achievements and stronger near-term growth expectations for Autodesk. The firm also noted that political and election-related uncertainties, which had caused some project delays, have subsided with the election now in the past.
The updated price target is supported by several leading macro indicators that suggest expansion in the architecture and design sectors. The Architecture Billings Index (ABI) and strong Demand for Design and Construction Services (DMI) data, along with a robust construction backlog, point to a favorable environment for Autodesk. Citi's checks during the Autodesk University event also highlighted competitive wins in the construction sector.
Citi anticipates that Autodesk will outperform its key performance indicators (KPIs) by 1 point in the upcoming quarter. The firm also suggests that there is potential for another target raise following the rollout of a new transaction model in Europe. Based on these factors, Citi has slightly increased its mid to long-term revenue estimate for Autodesk by 1 point.
The new price target of $358 implies a 33x multiple of Autodesk's calendar year 2026 enterprise value to free cash flow (EV/FCF), according to the Citi analyst. This revision reflects a more optimistic view of the company's financial prospects in light of the recent positive developments and market indicators.
In other recent news, Autodesk, Inc. has been the subject of numerous financial assessments. KeyBanc Capital Markets raised its price target for Autodesk from $325.00 to $330.00, maintaining an Overweight rating. This adjustment comes in anticipation of the company's third-quarter earnings report, with analysts suggesting that Autodesk's results may surpass expectations.
Scotiabank (TSX:BNS) initiated coverage on Autodesk with a Sector Outperform rating and a price target of $360, highlighting the company's commanding presence in the Architecture, Engineering, and Construction sector. Meanwhile, financial services firm Baird raised its stock price target for Autodesk to $330, citing stable performance and the company's positive transition to a new transaction model.
Deutsche Bank (ETR:DBKGn) held its rating but increased Autodesk's price target from $280.00 to $330.00. Barclays (LON:BARC) maintained an Overweight rating with a price target of $310.00. These developments come on the heels of Autodesk's strong financial performance, which saw a 2% increase in revenue and an earnings per share of $2.15 for the second quarter, alongside a free cash flow of $203 million.
InvestingPro Insights
Autodesk's financial metrics and market performance align well with Citi's optimistic outlook. According to InvestingPro data, Autodesk boasts impressive gross profit margins of 91.92% for the last twelve months as of Q2 2025, showcasing the company's strong pricing power and operational efficiency. This aligns with one of the InvestingPro Tips highlighting Autodesk's "impressive gross profit margins."
The company's revenue growth of 11.38% over the same period, coupled with a robust EBITDA growth of 27.37%, indicates a healthy expansion trajectory. This growth narrative is further supported by Autodesk's strong market performance, with a 39.75% price total return over the past six months and a 41.43% return over the last year.
However, investors should note that Autodesk is trading at a high P/E ratio of 64.07, which is consistent with the InvestingPro Tip suggesting it's "trading at a high earnings multiple." This valuation metric may indicate that much of the company's growth potential is already priced in.
For those seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for Autodesk, providing a deeper understanding of the company's financial health and market position.
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