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BMO reaffirms Autodesk stock rating and target, noting steady themes on AI and industry data at Autodesk University

EditorAhmed Abdulazez Abdulkadir
Published 10/21/2024, 09:07 AM
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On Monday, BMO Capital maintained its Market Perform rating on Autodesk, Inc. (NASDAQ:ADSK), with a steady price target of $287.00. Following interactions at Autodesk University, the firm's stance remains unchanged, as the event's discussions echoed prior insights. Key topics included the utilization of data across industry segments, the progression of Autodesk's AI technology, and ongoing improvements to its core product offerings.

BMO Capital highlighted that while Autodesk's AI advancements are promising, the most significant tools are not yet ready for market release. There are no adjustments to the firm's financial forecasts or price target for Autodesk as a result of these observations.

Autodesk University, a gathering of the company's management, customers, and partners, served as a platform to reaffirm the company's strategic focus and technological developments. The event underscored Autodesk's commitment to data integration and the enhancement of its AI capabilities, which are anticipated to drive future growth and innovation.

The analyst from BMO Capital provided insights into the company's direction, noting consistent themes with previous meetings. The emphasis on data harnessing across Autodesk's three main industry segments was particularly noted, which is integral to the company's growth strategy.

Autodesk's AI initiatives were also a focal point, with the analyst recognizing the potential of these tools to transform operations and create new efficiencies. However, the most impactful AI tools are still in development and have not reached a stage where they can be offered commercially.

In summary, BMO Capital's evaluation of Autodesk after Autodesk University reflects a steady outlook, with no immediate catalysts to alter the firm's estimates or price target. The analyst's comments suggest that while Autodesk is making strides in AI and data integration, the material benefits of these innovations may be on the horizon but are not yet influencing the company's current valuation.

In other recent news, Autodesk has been in the spotlight due to a series of recent developments. The company reported a 2% increase in revenue and an earnings per share of $2.15 for the second quarter, along with a free cash flow of $203 million. This positive financial performance is linked to Autodesk's successful transition to an agency model and a direct customer billing transaction model in North America, leading to a projected 11% increase in its full-year 2025 revenue growth guidance.

Autodesk's recent Autodesk University event emphasized its focus on cloud and AI technologies, with new AI-related product releases and features across the industry. The event was well-received by a large user base, demonstrating Autodesk's commitment to integrating advanced technologies into its services.

Analyst firms have been active in their assessments of Autodesk. Mizuho maintained a Neutral rating on Autodesk, while Citi reaffirmed its Buy rating. BofA Securities raised the price target to $325, and Oppenheimer maintained an Outperform rating with a $300 price target. BMO Capital and DA Davidson maintained neutral ratings, with price targets of $287 and $260 respectively.

InvestingPro Insights

Autodesk's recent performance and financial metrics provide additional context to BMO Capital's steady outlook. According to InvestingPro data, Autodesk boasts a market capitalization of $63.0 billion and has demonstrated strong revenue growth, with an 11.38% increase in the last twelve months as of Q2 2025. This growth aligns with the company's focus on innovation and data integration across its industry segments, as discussed at Autodesk University.

InvestingPro Tips highlight that Autodesk has impressive gross profit margins, which is reflected in the data showing a gross profit margin of 91.92% for the same period. This strong profitability supports the company's ability to invest in AI and core product improvements, as noted in the BMO Capital analysis.

However, investors should be aware that Autodesk is trading at a high P/E ratio of 59.42, which may indicate that the market has already priced in some of the potential future growth from AI and other innovations. This valuation metric aligns with BMO Capital's decision to maintain its Market Perform rating and current price target.

For those seeking a more comprehensive analysis, InvestingPro offers 20 additional tips for Autodesk, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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