Stifel reiterates Buy rating on Autodesk stock ahead of earnings

Investing.com - Stifel has maintained its Buy rating and $350.00 price target on Autodesk (NASDAQ:ADSK), a $61.7 billion market cap software company, ahead of its fiscal second-quarter earnings report scheduled for August 28. According to InvestingPro data, the company maintains impressive gross profit margins of 92%.

The research firm’s analysis follows conversations with three Autodesk platinum-level channel partners to gauge business trends. These checks yielded mixed results, with all three partners reporting performance below expectations, despite the company’s solid 12.4% revenue growth over the last twelve months.

Two partners attributed their underperformance to macroeconomic conditions, while the third partner explained that more business than expected was going directly to Autodesk due to the company’s new transaction model—a development considered positive from Autodesk’s perspective despite being challenging for partners.

The channel partners are still adapting to Autodesk’s new transaction model, which they unanimously agree is a beneficial strategic move by the company. Partners also noted that industry sentiment remains unchanged to slightly improved, particularly regarding prospects for deregulation.

Despite acknowledging the limited sample size and inconsistent partner feedback, Stifel expects Autodesk to deliver results at least in line with expectations for the fiscal second quarter and to reaffirm its guidance for fiscal year 2026. The company currently trades at a P/E ratio of 61.2, reflecting market confidence in its growth prospects.

In other recent news, Autodesk has announced a new free tier for its Flow Studio visual effects tools, aimed at making its AI-powered technology more accessible. The company has also reduced the price of its Lite plan by 50% to $10. This development comes a year after Autodesk acquired Wonder Dynamics, the creator of this technology. Meanwhile, Loop Capital initiated coverage on Autodesk with a Hold rating, citing the company’s ongoing transformation amid various business challenges. Citi reiterated its Buy rating on Autodesk, maintaining a $376 price target and highlighting the company’s strategic focus on higher margins, organic investments, and share repurchases. BofA Securities also maintained a Neutral rating, emphasizing Autodesk’s capital allocation strategy, including targeted acquisitions. Additionally, rumors have emerged about Autodesk considering a cash-and-stock acquisition of PTC (NASDAQ:PTC), with UBS maintaining a Buy rating and a $370 price target despite the market’s reaction. These developments reflect a dynamic period for Autodesk as it navigates strategic priorities and potential industry consolidation.

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