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UPDATE: Bank of America Merrill Lynch Downgrades Autodesk to Underperform, Lowers PT

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In a report published Friday, Bank of America Merrill Lynch downgraded its rating on Autodesk (NASDAQ: ADSK) from Neutral to Underperform, and lowered its price target from $39.00 to $32.00.

BofA Merrill Lynch noted, “We are downgrading ADSK to Underperform and revise our PO to $32 (from $39) based on 12x (in-line with the SPX vs. prior 35% premium) CY13 EPS est of $2.12 (ex-cash) + $7 cash/sh. We have highlighted weakening trends and macro risks since our Nov downgrade to Neutral, which intensified in F2Q causing rev miss and full yr guidance reset. F2Q revs were 4% below our/cons ests and license revs missed our est by 6% decelerating to 2% y/y growth from 12% in F1Q. Maintenance billings (a key forward indicator) grew 7% y/y vs. 37% in yr ago qtr. (See variance analysis on pg 3). FY13 rev growth guide was also revised down to 4-6% y/y from +10%. Mgt attributed ~70% of the miss to sales execution issues stemming from reorg done in 1Q and ~30% to macro pressures mainly in central EU.”

Autodesk closed on Thursday at $35.71.

Latest Ratings for ADSK

Dec 2016Canaccord GenuityUpgradesHoldBuy
Sep 2016Evercore ISI GroupInitiates Coverage onBuy
Sep 2016Evercore ISI GroupInitiates Coverage onBuy

View More Analyst Ratings for ADSK
View the Latest Analyst Ratings

Posted-In: Bank of America Merrill LynchAnalyst Color Downgrades Analyst Ratings


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