UBS reiterates Buy rating on Autodesk stock amid mixed demand signals

Investing.com - UBS maintained its Buy rating and $370.00 price target on Autodesk (NASDAQ:ADSK), a prominent player in the software industry with an impressive 92% gross profit margin, despite receiving mixed feedback on the company’s demand environment. According to InvestingPro data, the stock currently trades at $287.85, with analysts seeing up to 21% upside potential.

UBS analyst Taylor McGinnis reported that while two partners cited a slowdown in deal activity, two construction customers indicated stable IT spending growth expectations in line with steady industry growth.

The firm noted a similar pattern of mixed feedback last quarter when Autodesk delivered a solid 2-point beat to 10-11% constant currency revenue growth in the first quarter of fiscal 2026, adjusted for the company’s new model.

UBS attributed potential disconnects between partner feedback and actual performance to strength in the Autodesk store and greater contribution from pricing to fiscal 2026 growth, including larger annual price increases, renewals of the largest multi-year billing cohort facing three years of increases, and standardization of pricing as Autodesk moves to a direct model.

Despite the less encouraging feedback, UBS believes other growth drivers can support 10% constant currency adjusted revenue growth in fiscal 2026 and sees potential for at least 100 basis points of upside to fiscal 2026 EBIT margin as the year progresses.

In other recent news, Autodesk has garnered significant attention from various analysts and developments. UBS reiterated its Buy rating on Autodesk stock, maintaining a price target of $370, despite mixed partner feedback on demand. Piper Sandler also maintained an Overweight rating with a $361 price target, emphasizing potential free cash flow growth in fiscal year 2027 and beyond. Meanwhile, Stifel reaffirmed its Buy rating and $350 price target ahead of Autodesk’s upcoming earnings report, despite mixed performance feedback from platinum-level channel partners.

Autodesk has also introduced a new free tier for its Flow Studio VFX tools, aiming to make its AI-powered visual effects and animation technology more accessible. This move follows the company’s acquisition of Wonder Dynamics, which developed the technology. Furthermore, Loop Capital initiated coverage on Autodesk with a Hold rating and a $320 price target, noting the company’s navigation through a transformative period amidst various business challenges. These recent developments highlight Autodesk’s ongoing strategic maneuvers in a competitive landscape.

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