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Investing.com - UBS maintained its Buy rating and $370.00 price target on Autodesk (NASDAQ:ADSK) stock, despite mixed feedback on the company’s demand environment. According to InvestingPro data, Autodesk boasts impressive gross profit margins of 92% and is currently showing signs of being slightly undervalued based on comprehensive Fair Value analysis.
UBS analyst Taylor McGinnis reported that partner feedback was "mixed at best," with two partners citing a slowdown in deal activity, while two construction customers indicated steady IT spending growth expectations amid stable industry growth. The company maintains its position as a prominent player in the Software industry, with revenue growing at 12.44% over the last twelve months.
The firm noted a similar pattern of mixed feedback last quarter when Autodesk reported 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 the potential disconnect between mixed feedback and solid performance to strength in the Autodesk store and a greater contribution from price increases to fiscal 2026 growth, including larger annual price increases, renewals facing three years of increases, and pricing standardization 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 "at least 100bps upside" to fiscal 2026 EBIT margin as the year progresses. With Autodesk’s earnings report due in 3 days, InvestingPro subscribers can access 15+ additional exclusive insights and a comprehensive Pro Research Report, providing deeper analysis of the company’s financial health, which currently rates as "Good."
In other recent news, Autodesk has been the focus of several analyst reports and strategic updates. Piper Sandler reiterated an Overweight rating on Autodesk, citing potential for free cash flow growth beyond fiscal year 2027. Stifel maintained a Buy rating with a $350 price target, despite mixed performance reports from Autodesk’s channel partners ahead of the upcoming earnings report. Citi also reiterated a Buy rating with a $376 price target, emphasizing Autodesk’s strategic priorities such as driving higher margins and continuing its share repurchase program.
Loop Capital initiated coverage on Autodesk with a Hold rating and a $320 price target, noting the company’s ongoing transformation amidst various business challenges. In addition to analyst insights, Autodesk announced a new pricing model for its Flow Studio VFX tools, introducing a free tier and reducing the Lite plan’s price by 50%. This move is aimed at making the tools more accessible to independent creators and first-time users. These developments come as Autodesk continues to navigate a complex business environment.
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