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Investing.com - Citi has reiterated its Buy rating on Autodesk (NASDAQ:ADSK) stock with a price target of $376.00 following the company’s business update. The software giant, currently valued at $63.1 billion, maintains impressive gross profit margins of 92% and has delivered 12.4% revenue growth over the past year.
Autodesk filed an 8-K on Monday providing details about its strategic priorities, which include driving higher margins, allocating capital to organic investments, continuing its share repurchase program, and pursuing targeted and tuck-in acquisitions. According to InvestingPro, the company maintains a GOOD financial health score, suggesting strong positioning for these initiatives.
Citi views this announcement as an incremental positive, noting that the timing of the filing and a recent Bloomberg report from July 14, 2025, suggests Autodesk is no longer interested in a potential acquisition of PTC (NASDAQ:PTC).
The research firm characterized the language in Autodesk’s filing as "rather vague" but maintained its positive stance on the stock.
Citi remains buyers of Autodesk shares, citing "a greater likelihood of a no deal scenario" while the company continues to focus on sales and marketing efficiency and strengthening its long-term growth profile. Access the complete Autodesk Pro Research Report, along with 1,400+ other comprehensive company analyses, exclusively on InvestingPro.
In other recent news, Autodesk has been at the center of acquisition rumors, particularly concerning a potential deal with PTC. Despite these speculations, BofA Securities maintained its Neutral rating on Autodesk, emphasizing the company’s focus on core strategic initiatives and organic growth. UBS also commented on the rumors, maintaining a Buy rating and highlighting potential challenges with regulatory approval and financing arrangements. Meanwhile, Stifel reiterated its Buy rating, noting Autodesk’s ongoing channel consolidation efforts and a shift toward higher-value services. Citi also maintained a Buy rating, expressing concerns that a PTC acquisition could impact Autodesk’s margin expansion and free cash flow. Autodesk has outlined its strategy to enhance shareholder value by focusing on cloud, platform, and artificial intelligence, as well as optimizing sales and marketing operations for higher margins. The company plans to continue its share repurchase program, bolstered by its increasing free cash flow. These developments indicate Autodesk’s strategic focus on growth and efficiency amidst industry consolidation and acquisition rumors.
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