Citi has reaffirmed its Buy rating on Autodesk (NASDAQ: NASDAQ:ADSK) with a steady price target of $325.00.
The endorsement follows the company's recent showcase of new AI/GenAI features at Autodesk University in San Diego earlier this week.
The event provided a platform for discussions on current demand trends, revealing a mix of responses from customers and partners.
While some highlighted the adoption of new features and a shift from competitor platforms, others indicated delays in projects and expressed caution due to potential election risks.
Autodesk's introduction of AI capabilities has garnered significant interest from customers, although there is some uncertainty on which features to implement first.
Additionally, many customers are not yet prepared with the necessary data infrastructure to fully leverage the advanced AI functionalities. Despite these challenges, the feedback suggests that Autodesk is on a positive trajectory with its innovation efforts and is gaining competitive edge.
However, the demand environment in the near term remains uncertain. Citi plans to conduct a detailed quarterly reseller survey to acquire a clearer picture of demand trends for Autodesk in the third fiscal quarter. The survey's insights will be crucial in assessing the company's market position and customer adoption rates moving forward.
In other recent news, Autodesk reported a 2% increase in revenue and earnings per share of $2.15 for the second quarter, and a free cash flow of $203 million. These results come alongside the company's successful transition to an agency model and the implementation of a direct customer billing transaction model in North America, leading to a projected 11% increase in its full-year 2025 revenue growth guidance.
Analyst firms including BofA Securities, Oppenheimer, BMO Capital, DA Davidson, and Baird have recently updated their views on Autodesk. BofA Securities raised Autodesk's price target to $325, while Oppenheimer maintained an Outperform rating with a $300 price target.
BMO Capital maintained a Market Perform rating with a steady price target of $287, DA Davidson initiated coverage with a neutral rating and a price target of $260, and Baird reaffirmed an Outperform rating with a price target of $305.
InvestingPro Insights
Autodesk's recent AI innovations and Citi's bullish stance are further supported by data from InvestingPro. The company's impressive gross profit margin of 91.92% for the last twelve months as of Q2 2025 underscores its strong financial position and ability to invest in cutting-edge technologies like AI. This aligns with one of the InvestingPro Tips, which highlights Autodesk's "impressive gross profit margins."
Moreover, Autodesk's revenue growth of 11.38% over the same period indicates steady expansion, potentially driven by the adoption of new features and the shift from competitor platforms mentioned in the article. The company's operating income margin of 23.36% suggests efficient operations, which could provide a buffer as it navigates the uncertain demand environment discussed by Citi.
It's worth noting that Autodesk is trading near its 52-week high, with a price that is 99.21% of its peak. This performance, combined with a strong return of 19.67% over the last three months, reflects investor confidence in the company's direction and potential. However, investors should be aware that the stock's RSI suggests it may be in overbought territory, as pointed out by another InvestingPro Tip.
For readers interested in a more comprehensive analysis, InvestingPro offers 20 additional tips for Autodesk, providing a deeper understanding of the company's financial health and market position.
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