Bank of America Merrill Lynch Downgrading AutoDesk
Bank of America Merrill Lynch is out with a research report on AutoDesk (NASDAQ: ADSK) and it is downgrading shares to Neutral from Buy, but is maintaining its $38 price target.
In a note to clients, Bank of America Merrill Lynch writes, "We are downgrading ADSK to Neutral, from Buy, while maintaining our $38 PO, based on 17.5x C12E EPS of $1.90 (ex-cash) + $5/sh. We continue to view ADSK as a leader in CAD software and believe a business model transition to higher Suite sales and subscription revenues can help grow margins longer term. In addition, ADSK can benefit from combination of its better tech + broader distribution + lower price point. However, results from our recent reseller survey and high exposure to Europe lead us to our rating change."
Shares of ADSK gained 85 cents yesterday to close at $35.55.
