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On Tuesday, Citi analyst Tyler Radke adjusted the price target for Autodesk (NASDAQ:ADSK) to $376, up from the previous target of $374, while reiterating a Buy rating on the company’s shares. The revision followed Autodesk’s first-quarter results, which Radke described as solid, highlighting a balance of growth and margin performance. According to InvestingPro data, 23 analysts have recently revised their earnings estimates upward for the upcoming period, with the company currently commanding a market capitalization of $63.19 billion.
Autodesk reported numerous large Enterprise Business Agreement (EBA) renewals during the quarter, with customers increasing their use of Autodesk Construction Cloud ( ACC (NSE:ACC)), Revit, Fusion, and other software solutions. The continued rollout of the transaction model was noted to enhance margin efficiency, leading to an increase in the company’s annual operating margin and free cash flow (FCF) targets. InvestingPro data reveals the company maintains impressive gross profit margins of 92%, demonstrating strong operational efficiency.
Despite the strong quarterly performance, Autodesk maintained its full-year revenue projections and adjusted its billings targets, taking into account currency changes and the transaction model. This adjustment suggests that new business growth is expected to be on par with levels seen during the COVID-19 pandemic. Citi’s analysis indicated that the company’s updated outlook appears reasonable in the context of the current macroeconomic environment and compared to the more conservative guidance provided by peers in the vertical software market. The company has demonstrated solid revenue growth of 12.44% over the last twelve months, and InvestingPro analysis shows an overall financial health score of "GREAT," suggesting strong fundamental performance. For deeper insights into Autodesk’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Radke’s commentary emphasized the potential for Autodesk’s margins to improve further, supported by a robust top-line growth profile. The slight adjustment in estimates, which takes into account the quarter’s beat and the revised company outlook, led to the marginal increase in the price target to $376. Citi’s stance on Autodesk’s stock remains positive, with expectations of upside potential for the company.
In other recent news, Autodesk reported strong financial results for the first quarter of fiscal year 2026, with revenue growth exceeding expectations at 11% and billings increasing by 22% year-over-year on a constant currency basis. This performance prompted several analyst firms to adjust their price targets. Stifel raised its target to $350, citing Autodesk’s robust earnings, operating margin, and cash flow results, while maintaining a Buy rating. Rosenblatt also increased its target to $345, highlighting the company’s 15% revenue growth and improved operating margins. DA Davidson adjusted its target to $305, noting Autodesk’s solid margin results and product delivery execution, but maintained a Neutral rating.
JPMorgan raised its price target to $296, acknowledging Autodesk’s solid first-quarter performance but maintained a cautious outlook due to potential risks later in the year. Autodesk’s management has revised its full-year guidance slightly downward, reflecting macroeconomic uncertainties and potential impacts from past mergers and acquisitions. Despite these adjustments, the company has raised its guidance for billings, revenue, operating margin, and free cash flow for the full fiscal year 2026, attributing some of the positive outlook to favorable foreign exchange conditions. The company’s continued focus on restructuring and efficiency improvements has been recognized as contributing to its strong financial trajectory.
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