EU and US could reach trade deal this weekend - Reuters
On Tuesday, Citi analyst Tyler Radke increased the price target for Autodesk stock on (NASDAQ:ADSK) to $376, up from the previous target of $374, while reiterating a Buy rating. Radke highlighted Autodesk’s strong performance in the first quarter, noting a combination of growth and margin outperformance. The company secured several large Enterprise Business Agreements (EBAs) renewals during the quarter, with customers expanding their use of Autodesk Construction Cloud ( ACC (NSE:ACC)), Revit, Fusion, and other software solutions. According to InvestingPro data, 23 analysts have revised their earnings upwards for the upcoming period, with the company maintaining impressive gross profit margins of 92%.
Autodesk’s ongoing transition to a transactional model was also recognized as contributing to margin efficiency, leading to raised targets for annual operating margin and free cash flow (FCF). Although Autodesk’s top-line beat in the quarter was positive, with revenue growth at 12.44% over the last twelve months, the company has maintained its full-year revenue targets. Adjustments to billing targets have been made to account for currency conversion and the transactional model, suggesting that new business growth is anticipated to mirror levels seen during the COVID-19 period. InvestingPro analysis indicates the stock is currently trading in overbought territory, with multiple valuation metrics suggesting premium pricing.
The Citi analyst expressed confidence in Autodesk’s revised outlook, considering it fair in light of current economic conditions and in comparison to the more cautious guidance provided by other vertical software peers. Radke’s endorsement of the Buy rating is based on the belief that there is significant potential for Autodesk to further improve margins while maintaining a robust top-line growth profile. With a market capitalization of $63.19 billion and an overall Financial Health Score of "GREAT" on InvestingPro, the company continues to demonstrate strong fundamentals despite its premium valuation.
Radke’s slight adjustment to estimates, which takes into account the quarter’s performance and Autodesk’s updated outlook, has led to the minor increase in the price target to $376. This new target reflects a positive view of Autodesk’s ability to continue delivering financial growth and operational efficiency in a challenging macroeconomic environment.
In other recent news, Autodesk has reported strong financial results for the first quarter of fiscal year 2026, with revenue surpassing expectations and achieving a 15% year-over-year increase. The company also recorded a 22% year-over-year growth in constant currency billings. Analysts from Citi, DA Davidson, Stifel, and Rosenblatt Securities have responded to these results by adjusting their price targets for Autodesk’s stock. Citi raised its target to $376, maintaining a Buy rating, while DA Davidson increased its target to $305 with a Neutral rating. Stifel lifted its price target to $350, also reiterating a Buy rating, and Rosenblatt adjusted its target to $345, maintaining a Buy rating as well.
Autodesk’s performance was bolstered by significant Enterprise Business Agreement renewals and strong growth in its Architecture, Engineering, and Construction sector. Despite the robust quarterly results, Autodesk has adopted a cautious approach to its full-year guidance, slightly revising its billings forecast downward by one percentage point. The company’s transition to a subscription model and restructuring efforts have contributed to an improved operating margin outlook. Analysts have noted the positive impact of foreign exchange on Autodesk’s financials, though the company remains mindful of potential macroeconomic uncertainties.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.