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On Monday, Rosenblatt Securities sustained its Buy rating on Autodesk (NASDAQ:ADSK) shares, with a consistent price target of $290.00. The firm's stance comes ahead of Autodesk's anticipated second-quarter fiscal year 2025 results, set to be released on Wednesday, August 21st, following the market's close.
The analyst predicts that the company's performance across its three market segments will mirror the first quarter, with stable renewal rates and moderated growth in new subscribers.
The forecast for Autodesk's revenue stands at $1,482.9 million, marking a year-over-year increase of 10%. This expectation is bolstered by an 11% growth in the Architecture, Engineering, and Construction (AEC) segment, driven by infrastructure spending, and an equal rise in the AutoCAD/LT segment. The firm's outlook for Autodesk's fiscal year 2025 revenue growth remains at 10.2%, with a slight increase to 10.6% projected for fiscal year 2026.
Rosenblatt's analysis acknowledges the ongoing challenges from the weaker commercial real estate sector, which aligns with the broader industry perspectives from competitors in mechanical and infrastructure design software. Despite these headwinds, the firm's revenue projections for Autodesk are in line with previous estimates.
The transition to direct billing of customers, which is being implemented in most geographies this year, is also anticipated to have an incremental positive effect on Autodesk's financials. The analyst's reiteration of the Buy rating and price target reflects confidence in the company's stability and growth prospects, even as the stock trades at current levels.
In other recent news, Autodesk has been the focus of several significant developments. The software company reported a 12% increase in first-quarter revenue, totaling $1.42 billion, along with adjusted earnings per share of $1.87.
Amid these financial results, Autodesk has been under the scrutiny of significant shareholder Starboard Value LP, which is advocating for substantial changes in company practices, including leadership changes and cost reduction strategies.
On the analyst front, KeyBanc Capital Markets maintained a positive stance on Autodesk, reiterating an Overweight rating and upholding a $305.00 price target. The firm anticipates second-quarter revenues that meet or slightly exceed expectations.
Similarly, Rosenblatt sustained its Buy rating on Autodesk shares, with a price target of $290.00, indicating a potential return of approximately 16%.
Morgan Stanley resumed coverage on Autodesk, assigning the stock an Overweight rating and a price target of $305.00, signaling potential for increased demand for Autodesk's products and services.
Meanwhile, Baird raised its price target on Autodesk shares to $295, maintaining an Outperform rating, based on the company's anticipated healthy growth rates and positive outlook for fiscal year 2025.
InvestingPro Insights
As Autodesk, Inc. gears up to release its second-quarter fiscal year 2025 results, real-time data from InvestingPro offers additional insights into the company's financial health and market performance. Autodesk boasts an impressive gross profit margin of 91.73% for the last twelve months as of Q1 2023, highlighting the company's efficiency in managing its cost of goods sold relative to its revenue, which stood at $5.645 billion. This efficiency is a positive indicator for potential investors, reinforcing Rosenblatt Securities' optimistic outlook.
Furthermore, Autodesk has experienced a solid revenue growth of 10.6% during the same period, aligning with Rosenblatt's revenue growth projections for the fiscal year 2025. Investors may also take note of Autodesk's market capitalization of $55.54 billion, which reflects the company's substantial presence in the market. Although the company is trading at a high earnings multiple, with a P/E ratio of 55.33, this can be indicative of market expectations for future earnings growth.
InvestingPro Tips highlight that analysts have revised their earnings upwards for the upcoming period, suggesting a positive sentiment regarding Autodesk's performance. Additionally, with a strong return over the last three months, investors may find Autodesk's stock trajectory encouraging. For those seeking a more comprehensive analysis, there are 14 additional InvestingPro Tips available, which can be accessed on https://www.investing.com/pro/ADSK, offering a deeper dive into Autodesk's financial metrics and market position.
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