In a report released today, Koji Ikeda from Oppenheimer assigned a Buy rating to Autodesk (NASDAQ: ADSK), with a price target of $150. The company’s shares closed yesterday at $138.92, close to its 52-week high of $141.26.
Ikeda said:
“Autodesk reported good F1Q results in our assessment, with key metrics (ARR, ARPS, subscriptions, collections) trending positively, which suggests the model transition is working. Additionally, apples-to-apples, AEC products grew 20%+ for the second straight quarter, and management commentary on the construction outlook was bullish, which is consistent with our mid-quarter checks and lends support to our thesis that the digital construction opportunity should act as a healthy growth driver for the business in the future. On balance, the adoption of new accounting standards in F1Q adds some noise to the story, which may take time for investors to gain comfort with. Bottom line: We believe the key to subscription model transitions is entrenchment and the ability to maintain price, which Autodesk is clearly demonstrating. Reiterate Outperform.”
According to TipRanks.com, Ikeda is a 4-star analyst with an average return of 35.8% and a 94.7% success rate. Ikeda covers the Technology sector, focusing on stocks such as Coupa Software Inc, Liveperson, and HubSpot.
Currently, the analyst consensus on Autodesk is Strong Buy and the average price target is $155.79, representing a 12.1% upside.
In a report issued on May 10, Credit Suisse also maintained a Buy rating on the stock with a $150 price target.
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Based on Autodesk’s latest earnings release for the quarter ending January 31, the company reported a quarterly revenue of $553 million and GAAP net loss of $174 million. In comparison, last year the company had a GAAP net loss of $130 million.
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Autodesk, Inc. engages in the designing and developing multimedia software products. It includes Autodesk 360 cloud services, AutoCAD civil 3D and LT, 3Ds Max, Maya, and Revit. The company was founded by John Walker in April 1982 and is headquartered in San Rafael, CA.
