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On Wednesday, KeyBanc Capital Markets expressed increased confidence in Autodesk, Inc. shares (NASDAQ:ADSK), a software company, by raising its price target from $325.00 to $330.00. The firm maintained its Overweight rating on the stock.
The optimism from KeyBanc comes as the company approaches its third-quarter earnings report, with positive indicators from quarter-end checks. According to the analyst, demand trends are improving, and there is notable activity in the United Kingdom (TADAWUL:4280) with resellers experiencing a pull-forward ahead of a new model rollout.
The analyst believes that Autodesk's upcoming financial results for the third quarter (F3Q) may surpass expectations, and forecasts for the fourth quarter (F4Q) are anticipated to meet current projections. KeyBanc also suggests that any hints or "breadcrumbs" regarding Autodesk's fiscal year 2026 could be of particular interest to investors and analysts alike.
The firm's stance is bolstered by the belief that Autodesk remains a top pick as an early idea for 2025. The modest increase in the price target to $330 is a reflection of KeyBanc's incremental confidence in Autodesk's performance as it heads into the third-quarter earnings release.
In other recent news, Autodesk Inc (NASDAQ:ADSK). has been the focus of several financial institutions, with Scotiabank (TSX:BNS) initiating coverage on the company with a Sector Outperform rating and a price target of $360. This development comes on the heels of Autodesk's strong financial performance, which saw a 2% increase in revenue and an earnings per share of $2.15 for the second quarter, alongside a free cash flow of $203 million.
This performance has been attributed to Autodesk's successful transition to an agency model and a direct customer billing transaction model in North America, leading to a projected 11% increase in its full-year 2025 revenue growth guidance.
Several analyst firms have also revised their ratings and price targets for Autodesk. Baird raised its price target for the company to $330, while Deutsche Bank (ETR:DBKGn) held its rating but increased the software company's price target to $330. Barclays (LON:BARC) and BMO Capital maintained their Overweight and Market Perform ratings respectively.
Autodesk's recent Autodesk University event showcased its focus on cloud and AI technologies, although the most impactful AI tools are still in development and not yet ready for market release. The company's new transaction model has also received favorable feedback, with larger partners now viewing the model positively. These are all recent developments in Autodesk's strategic direction and financial performance.
InvestingPro Insights
Autodesk's financial metrics and market performance align with KeyBanc's optimistic outlook. According to InvestingPro data, Autodesk boasts impressive gross profit margins of 91.92% for the last twelve months as of Q2 2025, showcasing the company's strong pricing power and operational efficiency. This aligns with one of the InvestingPro Tips highlighting Autodesk's "impressive gross profit margins."
The company's revenue growth of 11.38% over the same period, coupled with a robust EBITDA growth of 27.37%, indicates a healthy expansion trajectory. This growth narrative supports KeyBanc's positive stance on Autodesk's upcoming earnings and future prospects.
However, investors should note that Autodesk is trading at a high P/E ratio of 61.82, which is reflected in the InvestingPro Tip stating it's "trading at a high earnings multiple." This valuation suggests that the market has high expectations for the company's future performance, aligning with KeyBanc's increased price target.
For those seeking a more comprehensive analysis, InvestingPro offers 16 additional tips on Autodesk, providing a deeper understanding of the company's financial health and market position. These insights could be particularly valuable as investors anticipate Autodesk's upcoming earnings report and potential hints about fiscal year 2026.
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