Oppenheimer raises Autodesk stock price target to $375 on strong growth

Investing.com - Oppenheimer raised its price target on Autodesk (NASDAQ:ADSK) to $375.00 from $350.00 on Friday, while maintaining an Outperform rating following the company’s better-than-expected fiscal second-quarter results. According to InvestingPro data, analysts’ targets range from $271 to $430, with the software giant currently commanding a market cap of $62.28 billion.

The software company reported "core" revenue growth holding steady at 11% for the quarter, maintaining a positive bias toward double-digit growth despite ongoing macroeconomic uncertainty. The company’s impressive 92% gross profit margin and overall revenue growth of 13.78% over the last twelve months demonstrate its strong market position.

Autodesk increased its full-year billings guidance by one percentage point, excluding foreign exchange and transition effects, after second-quarter collections reached $1.678 million, significantly exceeding analyst estimates of $1.579 million.

The company also provided investors with preliminary long-term margin expectations of 41% to 45%, excluding transition effects, which Oppenheimer viewed as a positive development for medium and long-term margin performance.

Oppenheimer cited a clearer path back to double-digit "core" revenue growth and identified the upcoming Investor Day and Autodesk University events as potential catalysts for the stock.

In other recent news, Autodesk has reported strong earnings and revenue results, drawing positive attention from several analyst firms. Autodesk’s fiscal second-quarter performance included a 17% year-over-year revenue growth, with total billings increasing by 36% to $1.678 billion, surpassing analyst estimates. This strong financial performance has led to several analysts raising their price targets for the company. Stifel increased its price target to $375, citing the company’s better-than-expected quarterly results and a notable raise in fiscal year guidance. Similarly, Mizuho adjusted its price target to $375, highlighting a significant revenue beat and growth in the Architecture, Engineering, Construction, and Operations segment. RBC Capital also raised its price target to $380, emphasizing improved confidence in Autodesk’s free cash flow outlook. Meanwhile, Rosenblatt set a new target of $355, acknowledging the solid second-quarter results. BMO Capital maintained a Market Perform rating with a price target of $333, recognizing stable growth despite broader economic concerns.

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