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On Friday, DA Davidson raised the price target for Autodesk (NASDAQ:ADSK) shares to $285 from the previous target of $275, while the firm retained a Neutral rating on the stock. The adjustment follows Autodesk’s fourth-quarter fiscal year 2025 results, which were seen as positive by the analysts. According to InvestingPro data, analyst targets for Autodesk range from $285 to $430, with the stock currently trading at $282.35. The company’s market capitalization stands at $61.38 billion, and it maintains impressive gross profit margins of 92%.
DA Davidson’s analyst William Jellison explained the decision, noting the company’s clear long-term growth objectives and the implementation of a 9% reduction in force (RIF). This move is expected to lead to increased efficiency and greater value creation for the company. Additionally, the continued approximately 25% growth in Autodesk Construction Cloud ( ACC (NSE:ACC)) was highlighted as a key factor in the firm’s outlook. InvestingPro data shows the company achieved 11.5% revenue growth in the last twelve months, with an overall Financial Health score of "GOOD."
Jellison believes that, when considering all the changes and developments, the overall impact should be favorable to Autodesk’s shareholders. The analyst’s comments suggest a belief that the company’s strategic adjustments and performance indicators are aligning to support shareholder value. Based on InvestingPro’s Fair Value analysis, Autodesk appears slightly undervalued at current levels. Subscribers can access 13 additional ProTips and a comprehensive Pro Research Report, providing deeper insights into Autodesk’s valuation and growth prospects.
Autodesk’s strategy, including the recent workforce reduction aimed at streamlining operations, is part of a broader effort to optimize the company’s performance and position it for sustainable growth. The positive growth in the ACC segment is indicative of the company’s strong position in the construction software market.
The new price target of $285 reflects DA Davidson’s updated assessment of Autodesk’s value, taking into account the factors mentioned by Jellison. While the Neutral rating indicates that the firm does not see significant upside or downside potential at this time, the increased price target suggests a slightly more optimistic view of the stock’s value based on recent developments.
In other recent news, Autodesk reported its fourth-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $2.29, compared to the forecast of $2.14. The company’s revenue for the quarter reached $1.64 billion, slightly above the anticipated $1.63 billion, marking a year-over-year increase of 12%. Rosenblatt Securities responded to these results by raising its price target for Autodesk shares to $340 from $325, maintaining a Buy rating. KeyBanc Capital Markets also adjusted its outlook, increasing the price target to $335 from $330 and maintaining an Overweight rating. Both firms highlighted Autodesk’s strategic changes, including a 9% reduction in force and a shift to a direct billing model, which are expected to enhance operating margins and free cash flow for fiscal year 2026.
Despite these positive developments, some investor concerns remain regarding Autodesk’s withdrawal of its previous revenue growth framework of 10-15%. The company’s guidance for fiscal 2026 projects revenue growth of 8-9% in constant currency, with anticipated improvements in operating margins and free cash flow between $2.075 billion and $2.175 billion. Autodesk plans to repurchase $1.1-$1.2 billion in shares during fiscal 2026. The strategic focus on AI-driven innovations and cloud platform enhancements continues to be a priority for Autodesk, as the company aims to maintain its competitive edge in the market.
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