Morgan Stanley Sees Good Things Ahead for Autodesk

In a report published Thursday, Morgan Stanley analyst Keith Weiss reiterated an Overweight rating and $65.00 price target on

. In the report, Morgan Stanley noted, “Accelerated shift to recurring revenues in ADSK's business mode transition likely to fuel optimism in the long-term story as investors focus on billings as a gauge of business momentum, in light of possible near-term revenue declines. Macro environment continues to improve heading into FY15, as highlighted by our ADSK Macro Index. We expect ADSK to start seeing the benefit of this in FY15 through improving licensed seat sales. Cloud 360 offerings have been gaining feature maturity and are starting to see wider adoption. Customers realize product value of maintenance subscription, which drives model transition and FY18 billings CAGR. Success of ADSK's suite strategy will be important to increasing billings per customer and sustaining long-term growth.” Autodesk closed on Wednesday at $55.42.