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Investing.com - Stifel has reiterated a Buy rating on Autodesk (NASDAQ:ADSK) stock, highlighting the ongoing theme of channel consolidation for the company. The software giant, currently valued at $60 billion and maintaining impressive gross profit margins of 92%, continues to demonstrate strong market presence. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
The research firm noted that channel consolidation is expected to continue for Autodesk, driven by the company’s new transaction model and its shift toward higher-value services rather than simply transactionally reselling Autodesk solutions. This strategic shift has contributed to the company’s robust revenue growth of 12.4% over the last twelve months.
Stifel pointed to Autodesk’s FY25 10-K disclosure, which revealed the company had approximately 1,260 channel partners at the end of FY26, representing a significant decrease from 1,700 channel partners at the end of FY21.
Despite these changes to channel relationships in recent years and momentum with Autodesk’s eStore, Stifel believes the channel will remain an important component of Autodesk’s global go-to-market distribution efforts in the coming years.
The firm’s analysis suggests that while Autodesk is streamlining its partner network, these distribution channels continue to play a strategic role in the company’s overall market approach.
In other recent news, Autodesk has been in the spotlight with reports suggesting it may be exploring an acquisition of PTC (NASDAQ:PTC). This potential acquisition has drawn mixed reactions from analysts. Citi has reiterated its Buy rating on Autodesk, expressing concerns that acquiring PTC could affect Autodesk’s margin expansion and cash flow, although they see potential in Autodesk’s stock if the deal does not proceed. Morgan Stanley (NYSE:MS), on the other hand, maintained its Overweight rating, noting that PTC’s assets could offer strategic benefits to Autodesk, especially in the manufacturing software sector. Additionally, Autodesk has announced its strategic priorities focusing on cloud, platform, and AI to drive long-term shareholder value. The company plans to optimize sales and marketing operations to achieve higher margins and continue its share repurchase program as free cash flow increases. In related news, RBC Capital has raised its price target on PTC, suggesting that its board may be exploring strategic alternatives amid the acquisition rumors. These developments highlight Autodesk’s ongoing efforts to enhance shareholder value while navigating potential acquisition opportunities.
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