There’s a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Autodesk (ADSK) and Workday Inc (WDAY) with bullish sentiments.
Autodesk (ADSK)
Oppenheimer analyst Koji Ikeda reiterated a Buy rating on Autodesk today and set a price target of $190. The company’s shares closed yesterday at $163.01, close to its 52-week high of $166.29.
Ikeda wrote:
“Autodesk reported strong F4Q results and initiated FY2020 revenue guidance above consensus. Highlights include: 1) accelerating total ARR growth; 2) accelerating billings growth; and 3) strong FCF generation. On balance, the integration of the recent acquisitions is raising the near-term expense profile of the business, resulting in less implied operating margin expansion in FY2020 versus FY2019. Bottom line: The F4Q results lend support to our thesis that the construction opportunity is a good growth driver for the business, and the good growth should continue in upcoming quarterly reported results. FY2020 FCF target of ~ $1.35B appearing increasingly achievable, the investment narrative should begin to shift to the ~$2.4B FCF target in FY2023, lending valuation support. Reiterate Outperform, PT to $190 (from $160).”
According to TipRanks.com, Ikeda is a 5-star analyst with an average return of 39.7% and a 100.0% success rate. Ikeda covers the Technology sector, focusing on stocks such as Coupa Software Inc, BlackLine Inc, and SPS Commerce.
Autodesk has an analyst consensus of Moderate Buy, with a price target consensus of $164.90, which is a 1.2% upside from current levels. In a report issued on February 20, Evercore ISI also maintained a Buy rating on the stock with a $175 price target.
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Workday Inc (WDAY)
In a report released today, Brian Schwartz from Oppenheimer maintained a Buy rating on Workday Inc, with a price target of $216. The company’s shares closed yesterday at $197.93, close to its 52-week high of $199.45.
Schwartz commented:
“Consistent with our preview, Workday delivered strong F4Q results and guidance, and results support our previously raised PT. Workday’s fundamental trends were clearly better in its F4Q and visible across metrics and with a beat-and-raise quarter. We believe management is executing very well against its strategy of offering a SaaS HCM, financials, and analytics platform, and our optimism about Workday’s outlook is elevated due to the company declaring, for the first time, that “large enterprises are now leading digital transformations with core financials.” Bottom Line: We believe Workday’s highly differentiated SaaS architecture, enterprise referenceability and satisfaction levels are difficult to match in the market. The F4Q results are indicative of Workday’s ability to grow strongly and gain market share while increasing cash flow and operating margin.”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 28.5% and a 77.2% success rate. Schwartz covers the Technology sector, focusing on stocks such as Instructure Inc, Salesforce.com, and MiX Telematics.
Workday Inc has an analyst consensus of Strong Buy, with a price target consensus of $207.18, representing a 4.7% upside. In a report issued on February 14, Guggenheim also maintained a Buy rating on the stock with a $210 price target.
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