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On Friday, RBC Capital Markets reiterated their Outperform rating on Autodesk stock (NASDAQ:ADSK), with a price target of $345.00. With a market capitalization of $58.66 billion and impressive gross profit margins of 92%, Autodesk has demonstrated strong quarterly performance and promising initial outlook for FY/26. The firm noted Autodesk’s higher than expected free cash flow (FCF) targets, stable business environment, and the advancement of its transaction model. According to InvestingPro data, the company maintains a healthy financial profile with an overall score of "GOOD."
The company’s restructuring efforts were also commended for their potential to optimize spending and reallocate resources effectively. Despite Autodesk’s revised growth target, which now steps back from the previous 10-15% to around 10%, RBC Capital sees this adjustment as a strategic move in line with the arrival of a new CFO. With current revenue growth at 11.5% and strong fundamentals, InvestingPro analysis suggests the stock is currently trading near its Fair Value. The firm expects that Autodesk’s business model is capable of achieving approximately 10% growth and, with margin leverage, could possibly meet or exceed the Rule of 50.
The Rule of 50 is a benchmark for high-growth SaaS companies, suggesting that the sum of a company’s growth rate and profit margin should exceed 50%. RBC Capital’s commentary suggests confidence in Autodesk’s ability to hit this mark, as the firm maintains both the Outperform rating and the $345 price target on the stock. The analyst’s statement affirms a positive perspective on the company’s future, "We liked the stable environment, progression of the transaction model and restructuring efforts that should optimize spend and reallocate resources. [...] Maintain OP rating, $345 PT."
Autodesk’s recent financial results and forward-looking statements appear to align with RBC Capital’s analysis, as the company continues to navigate its growth strategy and operational adjustments. The market will be watching closely to see if Autodesk can fulfill these expectations and continue to drive value for its shareholders.
In other recent news, Autodesk reported its fourth-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $2.29 compared to the forecast of $2.14. The company also exceeded revenue predictions, reporting $1.64 billion against the anticipated $1.63 billion. Following these results, Rosenblatt Securities raised its price target for Autodesk shares to $340, maintaining a Buy rating, while KeyBanc Capital Markets increased its target to $335, keeping an Overweight rating. Additionally, DA Davidson lifted its price target to $285, citing positive fourth-quarter results and a 9% workforce reduction aimed at increasing efficiency. BMO Capital Markets maintained a Market Perform rating for Autodesk with a price target of $324, highlighting the company’s restructuring plan and new CFO’s strategic direction. Autodesk anticipates revenue growth for fiscal year 2026 to be between 12%-14%, or 8-9% in constant currency, with improved operating margins. The company also plans to repurchase $1.1-$1.2 billion in shares during fiscal 2026, reflecting confidence in its financial strategy.
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