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On Friday, Stifel analysts, led by Adam Borg, adjusted the price target for Autodesk (NASDAQ:ADSK) shares, reducing it to $350 from the previous target of $360, while still retaining a Buy rating on the stock. The adjustment followed Autodesk’s release of financial results for the fourth quarter of fiscal year 2025, which surpassed expectations. With a market capitalization of $58.26 billion and impressive gross profit margins of 92%, the company’s strong performance was attributed to effective execution and gains from transitioning to a new business model, which helped to counterbalance the negative effects of foreign exchange headwinds and an uncertain macroeconomic environment. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with analyst targets ranging from $285 to $430.
Autodesk also announced a restructuring initiative, which includes a reduction in force (RIF) of 9% as part of a broader plan to reallocate resources. This move is aimed at optimizing go-to-market strategies, focusing on strategic priorities, and enhancing profit margins. Additionally, the company provided guidance for fiscal year 2026 that predicts higher-than-anticipated reported and organic/constant currency (CC) billings growth, as well as operating margin expansion. With revenue growth of 11.5% over the last twelve months and a strong financial health score from InvestingPro, the company appears well-positioned to execute its strategic initiatives. Autodesk also indicated an intention to accelerate its share repurchase program in FY26 compared to FY25 and announced an Analyst Day to be held in the third quarter of fiscal year 2026.
Despite these positive developments, there were some concerns noted by the analyst. Autodesk’s revenue guidance for FY26 suggests organic/CC revenue growth of only 8% to 9% year-over-year, which is below the low double-digit growth that had been anticipated. Furthermore, management has stepped back from its previous framework that projected a 10% to 15% year-over-year top-line growth. The company acknowledged encountering some issues with its new transaction model, which may have contributed to the tempered revenue guidance.
The latest financial disclosures and strategic plans from Autodesk have led to a mixed assessment from Stifel, with the lowered price target reflecting cautious optimism about the company’s ability to navigate through the challenges while capitalizing on the opportunities ahead.
In other recent news, Autodesk has been the focus of several analyst updates following its Q4 fiscal year 2025 earnings report. Rosenblatt Securities raised its price target for Autodesk to $340, maintaining a Buy rating, after the company reported a 12% year-over-year revenue growth and a 23% increase in total billings. The firm’s operating margins improved to 37%, contributing to a Non-GAAP EPS of $2.29, which exceeded both Rosenblatt’s and the consensus estimates. UBS also increased its price target to $370, keeping a Buy rating, citing a 300 basis points improvement in margins and a positive outlook on Autodesk’s financial results.
RBC Capital Markets reaffirmed their Outperform rating with a $345 price target, noting Autodesk’s strong quarterly performance and promising outlook for fiscal year 2026. They highlighted the company’s higher-than-expected free cash flow targets and strategic restructuring efforts. BMO Capital Markets maintained a Market Perform rating with a $324 price target, acknowledging the company’s challenges but commending its proactive steps to address expenses and margins.
DA Davidson raised its price target to $285, retaining a Neutral rating, and highlighted the company’s long-term growth objectives and a significant reduction in workforce aimed at improving efficiency. Autodesk’s strategic adjustments, including the growth of its Construction Cloud segment, have been seen as favorable for shareholders. These developments reflect a range of perspectives on Autodesk’s positioning and future potential amidst ongoing restructuring and leadership changes.
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