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On Tuesday, Citi analyst Tyler Radke increased the price target for Autodesk stock (NASDAQ:ADSK) to $374 from the previous target of $346, while reaffirming a Buy rating on the shares. The software giant, currently trading at $293.79 with a market capitalization of $62.86 billion, has shown strong momentum with a 33.65% return over the past year. According to InvestingPro data, analysts maintain a bullish consensus with price targets ranging from $265 to $430. Radke’s optimism stems from the recent Reseller Survey conducted with the Citi Research Innovation Lab, which indicated mixed results but showed an improvement in near-term growth expectations by two percentage points. The company’s impressive 91.96% gross profit margin and 11.53% revenue growth over the last twelve months support this positive outlook. InvestingPro has identified 13 additional key investment factors for Autodesk, available in the comprehensive Pro Research Report.
Despite observing a weakening in leading economic indicators such as the Architecture Billings Index (ABI), Purchasing Managers’ Index (PMI), and Durable Manufacturing Index (DMI) over the past quarter, Radke views the initial guidance provided by Autodesk as cautious and anticipates a modest less than one percentage point beat on the Q1 top-line. Radke expects minimal changes to the fiscal year 2026 top-line guidance due to the company’s exposure to tariffs.
Radke reiterated the Buy rating on Autodesk, citing the potential for continued margin expansion following the company’s recent reduction in force (RIF) and activist involvement. The analyst also noted the strong overall growth profile of Autodesk, driven by factors such as Make Momentum, pricing strategies for non-compliant users, and generative AI (GenAI) solutions.
The revised fiscal year 2026 revenue targets now align with the midpoint of the company’s guidance. A key factor in the raised price target is an updated regression analysis, which has observed an expansion in multiples. This analysis underpins the new target price of $374, implying a 33x enterprise value to fiscal year 2027 free cash flow (EV/FY27 FCF) multiple. Based on InvestingPro’s Fair Value analysis, Autodesk currently appears to be trading near its fair value, with the stock maintaining a "GOOD" overall financial health score.
In other recent news, Autodesk has maintained its Buy rating from UBS with a price target of $370, as analysts anticipate a 14% year-over-year growth in the first quarter of fiscal year 2026. UBS also forecasts an 8-9% constant currency adjusted revenue growth for the full fiscal year, with potential for improved EBIT margins. Meanwhile, Stifel analysts reaffirmed a Buy rating with a $310 target, projecting first-quarter results to align with expectations despite mixed feedback from channel partners. KeyBanc Capital Markets also maintained an Overweight rating with a $323 target, noting a potential slight reduction in Autodesk’s growth guidance due to economic conditions.
DA Davidson held a Neutral rating with a $265 target, highlighting over 20% organic growth in Autodesk’s Construction Cloud segment. The firm remains cautious due to the broader market environment but acknowledges Autodesk’s focus on operating efficiency. Additionally, Autodesk announced the appointment of Jeff Epstein and Christie Simons to its Board of Directors as part of an agreement with Starboard Value LP. This move aims to bolster the board’s expertise in technology and finance, enhancing Autodesk’s strategic initiatives. The cooperation agreement with Starboard includes provisions to facilitate collaboration for sustainable shareholder value.
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