On Thursday, Baird reaffirmed its Outperform rating on shares of Autodesk (NASDAQ:ADSK), a leader in 3D design, engineering, and entertainment software, maintaining a price target of $305.00. The endorsement follows insights gathered from discussions with Autodesk's team and several top-tier channel partners at the International Manufacturing Technology Show in Chicago.
Autodesk's transition to an agency model, according to reports from large U.S. partners, has been executed more smoothly than previously anticipated, with feedback now more positive than in recent reviews. Despite a challenging economic environment, the demand for Autodesk's offerings remains steady or is seen as positive.
The company's Fusion cloud strategy is also evolving favorably, with growing industry interest and promising initial applications in artificial intelligence. These developments are contributing to the positive outlook for Autodesk, as the company is expected to see benefits from its strategic execution and the ongoing transition to the agency model.
Baird's analysis suggests that Autodesk is well-positioned for the near term, with potential tailwinds arising from its operational execution. The firm anticipates a significant increase in Autodesk's free cash flow leading into fiscal year 2026, further solidifying the company's financial standing and market position.
In other recent news, Autodesk has been making waves in the financial sector with robust second-quarter results, reporting a 2% rise in revenue and earnings per share of $2.15. The company also highlighted a free cash flow of $203 million. KeyBanc Capital Markets, Griffin Securities, and Citi have all maintained positive ratings, with price targets of $325, $310, and $325 respectively.
HSBC upgraded Autodesk from Hold to Buy, setting a new price target of $299. Goldman Sachs also shifted its stance from Sell to Neutral, raising the price target to $295. These upgrades reflect analysts' confidence in Autodesk's strategic direction and potential for consistent financial performance.
Autodesk's transition to a subscription model and the implementation of a direct customer billing transaction model in North America have contributed to a more predictable and robust earnings growth trajectory. This strategic shift has led to an 11% increase in Autodesk's full-year 2025 revenue growth guidance.
Moreover, the company is on track to achieve its fiscal year 2026 operating margin targets of 38-40% ahead of schedule in fiscal year 2025. These recent developments highlight Autodesk's strong market position and potential for further growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.