ADSK
Autodesk gains as Jefferies sees durable double-digit growth, strong margins
Article Summary
BUY- Autodesk Inc. (NASDAQ: ADSK) rose almost 4% after analysts at Jefferies initiated coverage with a 'Buy' rating and a price target of $300, citing durable double-digit growth supported by strong fundamentals including high operating margins of around the high-30% range and a capital-light subscription-based model.
- The firm highlighted what it sees as structural strength in Autodesk's position within architecture, engineering, and construction software, arguing that its platform is anchored in proprietary 3D design and real-world asset data that is difficult to replicate.
- The analysts framed AI as a net tailwind potentially expanding monetization opportunities through subscription tiers and usage-based pricing models, highlighting recurring revenue profile, high customer retention, and steady margin expansion.
- Jefferies concluded that it expects continued execution to support earnings and free cash flow growth into the late 2020s, with its $300 price target based on multiple of projected future cash flow discounted back to present value.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 17.8% | 25% | 60.0 ptsModerate (17.8%) - Decent growth |
| EPS Growth Next 5Y ? | 15.2% | 25% | 50.0 ptsMeets Minimum (15.2%) - Passes screener |
| Target Price Upside ? | 37.9% | 20% | 85.0 ptsLarge Upside (37.9%) - Target: $330.76 vs Current: $239.85 |
| Gross Margin % ? | 85.5% | 15% | 100.0 ptsExceptional (85.5%) - Strong pricing power |
| Drawdown from 52-Wk High ? | -27.1% | 15% | 80.0 ptsSolid Dip (-27.1%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About ADSK
- Autodesk, Inc. engages in the provision of 3D design, engineering, and entertainment technology solutions worldwide.
- The company offers AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution; Autodesk Build, a toolset for managing, sharing, and accessing project documents for streamlined workflows between the office, trailer, and jobsite; Revit, a software built for building information modeling to help professionals design, build, and maintain energy-efficient buildings; Autodesk BIM Collaborate Pro, cloud-based design collaboration and design management software; BuildingConnected, a SaaS preconstruction solution; and Tandem, a cloud-based platform that transforms the built asset lifecycle.
- It also provides AutoCAD software, a customizable and extensible CAD application for professional design, drafting, detailing, and visualization; AutoCAD LT, a drafting and detailing software; Fusion, a 3D CAD, computer-aided manufacturing, and computer-aided engineering tool; Inventor, a software solution that offers a set of tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; product design and manufacturing collection tools; and Vault, a data management software for managing data in one central location, accelerate design processes, and streamline internal/external collaboration.
- The company offers Flow Production Tracking, a cloud-based production management software; Maya software that offers 3D modeling, animation, effects, rendering, and compositing solutions for film and video artists, game developers, and design visualization professionals; Media and Entertainment Collection that offers end-to-end creative tools for entertainment creation; and 3ds Max software, which provides 3D modeling, animation, and rendering solutions.
- It sells its products and services through a network of resellers and distributors.
- Autodesk, Inc. was incorporated in 1982 and is headquartered in San Francisco, California.