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On Friday, KeyBanc Capital Markets updated its outlook on Autodesk (NASDAQ:ADSK) shares, increasing the price target to $350 from the previous $323, while maintaining an Overweight rating on the stock. This aligns with broader analyst optimism, as InvestingPro data shows 21 analysts have recently revised their earnings expectations upward. The adjustment comes after Autodesk presented its first-quarter results, which showed an acceleration in normalized constant currency (c.c.) revenue growth.
In a recent statement, KeyBanc analyst Jason Celino highlighted Autodesk’s performance, noting that the company’s revenue growth accelerated to 11%, including 10% organic growth, up from approximately 9% in the previous quarter. The company’s impressive 92% gross profit margin and strong market position as a prominent player in the software industry support this positive outlook. Celino pointed out that this growth trajectory is encouraging and suggests a more favorable path moving forward, particularly into the second half of the year. For deeper insights into Autodesk’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive metrics and expert research reports.
Despite Autodesk’s conservative approach to its fiscal year 2026 normalized c.c. billings growth guidance, which was lowered by one percentage point, Celino remains optimistic about the company’s long-term prospects. He believes that the current guidance of 8-9% normalized c.c. growth is relatively conservative and may offer room for upside potential.
The raised price target of $350 is based on a 32x multiple of Autodesk’s expected fiscal year 2027 enterprise value to free cash flow (EV/FCF). This valuation reflects KeyBanc’s continued confidence in Autodesk’s long-term opportunities and its ability to maintain good momentum in the market. The Overweight rating suggests that KeyBanc expects the stock to outperform the average return of the stocks that the firm covers over the next 12 to 18 months.
In other recent news, Autodesk Inc . reported a robust start to its fiscal year 2025, exceeding earnings and revenue expectations. The company’s earnings per share for the first quarter stood at $2.29, surpassing analyst projections of $2.15, while revenue reached $1.63 billion, beating the anticipated $1.61 billion. Autodesk also reported a 15% year-over-year increase in revenue, highlighting its strong performance despite macroeconomic uncertainties.
RBC Capital Markets maintained an Outperform rating on Autodesk, with a stable price target of $345.00, reflecting confidence in the company’s strategic investments and growth trajectory. BMO Capital Markets also adjusted its outlook, raising Autodesk’s stock price target to $333 from $324, acknowledging the company’s effective navigation through its business model transition.
Autodesk’s fiscal year 2026 guidance has been slightly raised, with an increase in free cash flow projections, further solidifying investor confidence. The company continues to focus on AI and cloud investments, aiming to capture emerging market opportunities. These developments underscore Autodesk’s strategic direction and resilience in a fluctuating economic landscape.
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