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On Friday, DA Davidson analyst William Jellison updated the price target for Autodesk (NASDAQ:ADSK) to $305.00, up from the previous $265.00, while maintaining a Neutral rating on the shares. The adjustment comes in the wake of Autodesk’s first-quarter fiscal year 2026 performance, which demonstrated robust growth across various products and industries, as well as solid margin results. According to InvestingPro data, 21 analysts have revised their earnings upwards for the upcoming period, with analyst targets ranging from $271 to $430. The company’s current market capitalization stands at $63.2 billion.
Autodesk’s normalized revenue growth for the quarter was reported at 11%, exceeding expectations and marking an acceleration from the previous quarter. This growth was accompanied by a year-over-year increase of 22% in billings on a normalized basis, a significant jump from the 15% seen in the fourth quarter of fiscal year 2025. InvestingPro data reveals impressive financial metrics, including a 92% gross profit margin and trailing twelve-month revenue of $6.35 billion. Get access to 15+ additional ProTips and comprehensive financial analysis with an InvestingPro subscription.
Despite the strong first-quarter performance, Autodesk has opted for a cautious stance in its full-year guidance. The company has revised its normalized billings forecast slightly downward by approximately 1%, setting the new midpoint at 17% growth. According to Jellison, this revision does not stem from current demand issues but rather reflects Autodesk’s anticipation of potential risks that may arise in the near future.
The analyst highlighted Autodesk’s execution in terms of product delivery, transaction model, efficiency initiatives, and corporate governance. Additionally, organic revenue growth within the company’s Make segment is noted to remain robust, with a reported 24% increase, even after the acquisition of Payapps in February 2025, indicating continued market share expansion in the construction sector.
Furthermore, Autodesk has been successfully reorganizing its labor force and enhancing go-to-market efficiencies, which has led to a conservative yet improved forecast for its fiscal year 2026 margin guidance, now suggesting a 50 basis points increase at the lower end of the spectrum. Jellison’s price target implies a valuation of the enterprise at 25 times EBITDA, acknowledging the company’s commendable execution across various facets of its business. InvestingPro analysis indicates the stock is trading at elevated multiples, with a P/E ratio of 63.3 and an EV/EBITDA of 42.4. The company maintains a "GREAT" Financial Health score of 3.03 out of 5, reflecting its strong market position despite premium valuations.
In other recent news, Autodesk’s financial performance for the first quarter of fiscal year 2026 has drawn attention, with multiple analysts adjusting their price targets for the company. Stifel raised its price target for Autodesk to $350, highlighting the company’s strong revenue, operating margin, and earnings per share, which exceeded expectations. Autodesk’s revenue grew by 11% year-over-year in constant currency terms, and billings increased by 22%, reflecting robust business fundamentals despite economic uncertainties. Similarly, Rosenblatt increased its price target to $345, noting the company’s 15% revenue growth and 37% operating margin, with non-GAAP earnings per share of $2.29 surpassing forecasts.
JPMorgan also revised its price target to $296, maintaining a Neutral rating, and acknowledged Autodesk’s cautious approach to its fiscal year guidance amid macroeconomic uncertainty. KeyBanc, meanwhile, raised its price target to $350, emphasizing Autodesk’s accelerating revenue growth and expressing optimism about its long-term prospects. The company has adjusted its full-year guidance, accounting for foreign exchange impacts and maintaining a steady revenue outlook. These developments indicate that while Autodesk faces some caution due to broader economic conditions, its recent financial results and strategic adjustments have been positively received by analysts.
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