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Investing.com - Piper Sandler has reiterated an Overweight rating on Autodesk (NASDAQ:ADSK) with a price target of $373.00. The software giant, currently trading at $321.67 with a market capitalization of $68.39 billion, has received upward earnings revisions from 24 analysts according to InvestingPro data.
The research firm highlighted Autodesk’s progress in developing Vertical AI solutions for architecture, engineering, construction, manufacturing, and media industries, as demonstrated at the recent Autodesk University event. The company maintains impressive gross profit margins of 92% while delivering revenue growth of ~14% year-over-year.
Piper Sandler noted that Autodesk’s investments in operationalizing generative AI are "very close to bearing fruit" and could lead to "material product change" in an industry that has remained largely unchanged as seat-based desktop tools for four decades. With an overall Financial Health score of "GOOD" on InvestingPro, the company appears well-positioned to execute its AI strategy.
The firm specifically pointed to AutoConstrain in Manufacturing and Neural CAD (AI foundation models for CAD objects) as examples of how Autodesk is creating significant improvements to customer workflows.
Piper Sandler also mentioned Autodesk’s evolving business model, including upcoming pricing changes to Autodesk Platform Services that could create new monetization opportunities based on consumption and cloud computing as generative technologies expand.
In other recent news, Autodesk has introduced a new usage-based pricing model for its Platform Services APIs, set to take effect at the end of the year. This move aligns with Autodesk’s strategy to monetize AI-powered automations and agents, according to UBS, which has reiterated its Buy rating and set a price target of $385.00. KeyBanc has also maintained its Overweight rating on Autodesk, with a $365.00 price target, citing varied end market conditions observed at the AU conference in Nashville. The firm noted strong performance in infrastructure but mixed results in construction and manufacturing due to inflation and labor shortages.
Stifel has echoed a positive sentiment, maintaining a Buy rating and a $375.00 price target following Autodesk’s annual conference. During the event, Autodesk highlighted innovations across its Architecture, Engineering, Construction, and Operations, Design and Manufacturing, and Media and Entertainment sectors. Additionally, Autodesk has entered into a multi-year partnership with the Kraft Group to serve as the Official Design and Make Platform for the New England Patriots. This partnership will involve the use of Autodesk Construction Cloud for managing infrastructure projects at Gillette Stadium.
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