Stifel raises Autodesk stock price target to $375 on strong earnings

Investing.com - Stifel raised its price target on Autodesk (NASDAQ:ADSK) to $375.00 from $350.00 while maintaining a Buy rating following the company’s better-than-expected quarterly results. According to InvestingPro data, the company currently trades at a P/E ratio of 62.35, reflecting its premium valuation as a prominent player in the software industry.

The software company delivered what Stifel described as "one of its cleanest prints in recent memory," with all key metrics exceeding guidance and expectations from both Stifel and the broader market. Autodesk also raised its fiscal year guidance by more than the amount of the earnings beat. The company maintains impressive gross profit margins of 92.04% and has achieved revenue growth of 13.78% over the last twelve months.

Stifel attributed the strong performance to solid execution, consistent macroeconomic conditions, strength in the architecture, engineering, construction, and operations (AECO) segment, and better-than-expected linearity in the business.

Autodesk also announced fiscal year 2029 margin targets ahead of its October 7 Investor Day, projecting a 41% reported operating margin and a 45% underlying operating margin, which Stifel considers "prudent and achievable."

The focus now shifts to Autodesk’s upcoming user conference scheduled for September 16-18 and its Investor Day on October 7, with Stifel remaining "bullish on Autodesk’s strategy and competitive positioning" despite ongoing macroeconomic uncertainty.

In other recent news, Autodesk has reported strong fiscal second-quarter results, leading to several analysts raising their price targets for the company. The company achieved a 17% year-over-year revenue growth, or 11% on a constant currency basis, surpassing analyst expectations. Total billings increased by 36% year-over-year to $1.678 billion, exceeding estimates by about 5%. Mizuho highlighted a $39 million revenue beat, attributing the success to growth in the Architecture, Engineering, Construction, and Operations segment. Rosenblatt and Piper Sandler raised their price targets to $355 and $373, respectively, maintaining positive ratings due to Autodesk’s robust performance. Goldman Sachs also increased its price target to $320, noting revenue exceeded consensus estimates by 2.2% and free cash flow surpassed forecasts by 103%. William Blair reiterated its Outperform rating, emphasizing the company’s 39% operating margin, which exceeded market expectations. These developments reflect a positive outlook for Autodesk among analysts.

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