UPDATE: Morgan Stanley Upgrades Autodesk to OW from EW, Changes PT to $60.00 from NA

In a report published Monday, Morgan Stanley analyst Keith Weiss upgraded Autodesk, Inc.

to Overweight from Equal-weight, changing its price target to $60.00 from NA. According to the report, new cloud-based subscriptions, macro tailwinds and initial impacts from a business model transition drive low-teens FY15 billings growth in the analyst's model, ~7% ahead of cons. Accelerating growth in CY14 and significant opportunities ahead as the change unfolds supports a revised $60 price target and the move to Overweight. “Autodesk's business model transition carries significant value and improving macro conditions position the company well to execute on the goals they set out at the October 2, 2013 Analyst Day,” the report noted. “Conversations at last month's Autodesk University enabled us to refine our business transition model and we are now more confident in the conservatism of the underlying assumptions that drive our base case. Despite a 20% run in the stock, with a conservative model indicating $4.38/share in FCF for FY18 (a 14% FCF CAGR), we believe it is still the early innings of this story.” Some risks to ADSK's price target include high correlation to the macro environment, limiteded ability to protect earnings with high percentage of revenues from perpetual license sales (~55%) and high dependence on construction and manufacturing industries. ADSK closed Friday at $51.47.