Trump announces trade deal with EU following months of negotiations
On Friday, UBS analyst Taylor McGinnis increased the price target for Autodesk (NASDAQ:ADSK) to $370 from the previous target of $350, while reaffirming a Buy rating for the company’s shares. According to InvestingPro data, analyst targets for Autodesk range from $285 to $430, with the stock currently showing potential upside based on its Fair Value analysis. McGinnis expressed a positive outlook on Autodesk’s recent financial results, highlighting the 300 basis points year-over-year improvement in underlying margins for fiscal year 2026, which he noted as outweighing a slight decrease in constant currency revenue growth adjusted for changes in the transaction model. The company maintains impressive gross profit margins of 92%, according to InvestingPro data, which shows 13 additional key insights about the company’s financial health.
Autodesk’s reported 9% Remaining Performance Obligation (RPO) growth and the anticipated margin expansion for FY26 were identified as significant drivers for the stock. McGinnis believes these factors demonstrate Autodesk’s dedication to improving its margins, which he sees as a pivotal catalyst for the company’s shares.
The UBS analyst acknowledged that some might be concerned with Autodesk’s revised growth projections, which now indicate an 8-9% constant currency adjusted revenue growth for FY26—lower than the previously stated 10-15% range. For context, the company’s revenue grew 11.5% over the last twelve months, with a robust five-year compound annual growth rate of 16%. However, Autodesk has clarified that this adjustment does not reflect a decrease in the company’s long-term growth potential. Instead, it is a conservative move accounting for potential disruptions from ongoing restructuring and the transition of the Chief Revenue Officer (CRO).
Despite these concerns, McGinnis pointed out that Autodesk’s management has assured that their guidance philosophy remains consistent under the new Chief Financial Officer (CFO). He suggested that the updated guidance could be beneficial for the company’s positioning.
Concluding his analysis, McGinnis raised his forecast for Autodesk’s fiscal year 2026 free cash flow to $2,111 million, up from $2,053 million. With Autodesk’s shares trading at 29 times the calendar year 2025 enterprise value to free cash flow (EV/FCF), he maintains that the stock remains attractive, especially given the revised outlook. For a comprehensive analysis of Autodesk’s valuation metrics and growth potential, investors can access the detailed Pro Research Report available on InvestingPro, which provides deep-dive analysis of over 1,400 top US stocks.
In other recent news, Autodesk’s financial performance has caught the attention of several analyst firms. Rosenblatt Securities raised its price target for Autodesk to $340, maintaining a Buy rating, after the company reported Q4 fiscal year 2025 earnings that slightly exceeded expectations. Autodesk achieved a 12% year-over-year revenue growth and a 23% increase in total billings, with higher operating margins contributing to a Non-GAAP EPS of $2.29. Similarly, KeyBanc Capital Markets increased its price target to $335, retaining an Overweight rating, citing positive signals from Autodesk’s guidance for higher operating margins and free cash flow for fiscal year 2026.
RBC Capital Markets reiterated its Outperform rating with a $345 price target, emphasizing Autodesk’s strong quarterly performance and restructuring efforts aimed at optimizing spending. BMO Capital Markets maintained a Market Perform rating with a $324 price target, acknowledging the challenges from a difficult macroeconomic environment but noting Autodesk’s proactive steps in addressing expenses. DA Davidson raised its price target to $285, keeping a Neutral rating, highlighting Autodesk’s clear long-term growth objectives and a 9% reduction in force to enhance efficiency.
These developments reflect Autodesk’s strategic adjustments and operational changes aimed at driving shareholder value amid a challenging economic landscape. The company’s focus on restructuring, optimizing resources, and maintaining growth in sectors like Autodesk Construction Cloud are key factors in the analysts’ evaluations. Investors will be closely monitoring Autodesk’s progress as it navigates its growth strategy and adapts to evolving market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.