Market Overview

KeyBanc Raises Autodesk Price Target, Estimates After Q4 Print

Share:
KeyBanc Raises Autodesk Price Target, Estimates After Q4 Print
Related ADSK
Cramer Says 'Nibble' Away At Tech, While Pro Likes Apple
44 Biggest Movers From Friday
ClearBridge All Cap Growth Strategy Portfolio Manager Commentary Q3 2018 (Seeking Alpha)

Autodesk, Inc. (NASDAQ: ADSK) reported slightly better-than-expected revenue and earnings per share in the fourth quarter, although net subscriber adds were soft, according to KeyBanc Capital Markets. 

The Analyst

KeyBanc analyst Monika Garg maintained an Overweight rating on Autodesk and increased the price target from $134 to $138

The Thesis

Q4 annualized recurring revenue, or ARR, came in line with estimates, Garg said in a Tuesday note.

For 2019, Autodesk projects net subscriber addition growth of 14.2 percent, falling short of expectations of 18-19 percent, the analyst said. 

The company's ARR guidance was strong at 28-30 percent, above the 24-26 percent consensus estimate, Garg said. 

"Autodesk also provided FY19 revenue and EPS guidance in accordance with ASC 606, and is seeing a negative impact of $40 million to revenue and 15 cents to EPS," Garg said. The revenue guidance is slightly below the consensus, the analyst said.

Given the above-consensus ARR guidance for fiscal 2019 and the weak net subscriber addition guidance, the company has to increase average revenue per subscriber by 13-14 percent, according to KeyBanc. 

KeyBanc modestly raised its estimates for fiscal 2020 and 2021 on the basis of Autodesk's updated outlook and tax benefits. 

The Price Action

Autodesk shares were up about 45 percent over the past year through Tuesday. 

The stock was surging nearly 13 percent to $135.41 at the time of publication Wednesday. 

Related Links:

Survey Says Autodesk Is Likely To Benefit From Consumer Trends

Autodesk Banks On Subscriber Base, Restructuring Woes Remain

Photo courtesy of Autodesk. 

Latest Ratings for ADSK

DateFirmActionFromTo
Sep 2018Canaccord GenuityMaintainsBuyBuy
Aug 2018Credit SuisseMaintainsOutperformOutperform
Aug 2018Canaccord GenuityMaintainsBuyBuy

View More Analyst Ratings for ADSK
View the Latest Analyst Ratings

Posted-In: KeyBanc Capital Markets Monika GargAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (ADSK)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
AMTDMorgan StanleyUpgrades65.0
APOMorgan StanleyDowngrades34.0
ARMKBairdUpgrades44.0
CGMorgan StanleyDowngrades23.0
EIXEdward JonesDowngrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

The Protectionists Are Coming: Assessing The Fallout From Gary Cohn's Resignation

Bitcoin Tumbles, Other Cryptos Fall Out Of Bed Amid Renewed Risk Concerns