Sprouts Farmers Market closes $600 million revolving credit facility
Tuesday, Autodesk (NASDAQ:ADSK) stock maintained its Buy rating and a price target of $370.00, as reiterated by UBS analysts. The target represents a significant upside from the current price of $293.86, with analyst consensus targets ranging from $265 to $430. The commentary from UBS highlighted mixed signals from market checks regarding Autodesk’s deal activity. Some reports indicated an uptick in demand, bolstered by robust construction backlogs, while others pointed to growth hurdles amid economic uncertainties and Autodesk’s shift to a new transaction model.
Despite the varied feedback, UBS expects Autodesk to achieve a year-over-year growth of 14% in the first quarter of fiscal year 2026, aligning with the higher end of the company’s guidance for the past two quarters. This outlook appears reasonable given Autodesk’s impressive 11.5% revenue growth in the last twelve months and strong gross profit margins of 92%. UBS also reaffirmed Autodesk’s forecast for 8-9% constant currency adjusted revenue growth for the full fiscal year 2026. This optimism is partly based on the prediction that pricing will play a more significant role in driving growth this year compared to the previous year.
The more optimistic outlook for Autodesk is largely hinged on the potential for higher EBIT margins in fiscal year 2026. UBS suggests that there could be a few percentage points of upside to the current EBIT margin guidance of 36.5% for the fiscal year. However, there is a slight concern that Autodesk may not increase its full-year guidance as it has in the first quarters of previous years.
The determination of whether Autodesk will adjust its full-year guidance is expected to depend on the company’s performance in the first quarter of fiscal year 2026. UBS posits that a raise of approximately 50 basis points would be a favorable indicator for Autodesk’s stock.
In other recent news, Autodesk is preparing for its upcoming earnings report, with analysts from Stifel and KeyBanc anticipating results that align with expectations. Stifel maintains a Buy rating with a $310 target, while KeyBanc holds an Overweight rating, adjusting their price target to $323. Both firms have noted the challenging macroeconomic environment affecting Autodesk’s growth, though they remain optimistic about its long-term prospects. DA Davidson, on the other hand, maintains a Neutral rating with a $265 target, highlighting Autodesk’s over 20% growth in its Construction Cloud segment.
Additionally, Autodesk has expanded its Board of Directors by appointing Jeff Epstein and Christie Simons, as part of an agreement with Starboard Value LP. This move is expected to enhance the board’s expertise in technology and finance. The cooperation agreement with Starboard includes customary provisions to facilitate collaboration and enhance shareholder value.
Despite some challenges, analysts continue to see potential in Autodesk’s growth opportunities, particularly in the construction and infrastructure sectors. The company’s strategic board appointments and focus on operational efficiencies are seen as positive steps in navigating the current economic landscape. Investors are closely watching Autodesk’s performance and guidance adjustments as the company adapts to market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.