Analysts Expressed Optimism Over Autodesk's Upcoming Results Citing Robust Demand, Digitization, Easing Macros

  • Mizuho analyst acknowledged that several significant large-cap software vendors are due to report July quarter results over the next few weeks. Following an extended sell-off, software and the broader market have significantly rallied in recent weeks. 
  • Mizuho analyst Gregg Moskowitz maintained Autodesk, Inc ADSK with a Buy and raised the price target from $250 to $290.
  • Moskowitz believes that strong underlying demand for industrial software (as reflected in comp's recent results), and ADSK's resilient subscription model, should once again overcome growing macro and FX-related headwinds. 
  • KeyBanc analyst Jason Celino reiterated Autodesk with an Overweight and price target of $250.
  • Celino maintained his optimistic view of growth opportunities tied to the digitization of architecture, design, and construction. 
  • With an easing of macro concerns, he acknowledged recent relative outperformance for ADSK (+41% vs. +23% NASDAQ) since June 16 market lows. 
  • Trading at 30x FY24 P/E (or 35x his FY24 EV/FCF), he still saw the potential for multiple expansions toward Industrial Software averages of 34x P/E. Still, tactically he saw a more balanced risk-reward into earnings given the recent relative outperformance. 
  • Wolfe Research analyst Gal Munda initiated coverage of Autodesk with an Outperform rating and a $270 price target.
  • The analyst said the company had changed its business model over the last few years.
  • Munda believes the end of discounts for multi-year billings provides a unique opportunity to buy into this "quality name" at a discount. 
  • Price Action: ADSK shares traded lower by 1.55% at $230.03 on the last check Wednesday.
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