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KeyBanc maintains $325 target on Autodesk, stays positive

Published 05/09/2024, 19:46
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On Thursday, KeyBanc Capital Markets sustained its optimistic outlook on Autodesk, Inc. (NASDAQ:ADSK), maintaining an Overweight rating and a price target of $325.00. Following recent investor meetings with Autodesk executives, Amy Bunszel, EVP of AEC Solutions, and Simon Mays-Smith, VP of Investor Relations, KeyBanc expressed increased confidence in the company's short-term and long-term ambitions.

The meetings centered on Autodesk's transition to a new transaction model, its standing in the competitive landscape of construction and infrastructure, and potential margin opportunities. These insights reinforced KeyBanc's stance, citing Autodesk as one of the top picks for the year 2025.

Autodesk's executive team provided clarity on the strategic shifts and operational mechanics that are expected to drive the company's growth. These changes are part of Autodesk's broader efforts to solidify its market position and capitalize on industry opportunities.

KeyBanc's continued endorsement reflects a belief in Autodesk's strategic direction and potential for financial performance. The firm's price target of $325.00 remains unchanged, signaling confidence in the value Autodesk is expected to deliver to shareholders.

In other recent news, Autodesk has been the center of attention following robust second-quarter results, with a 2% rise in revenue and earnings per share of $2.15. The company also reported free cash flow of $203 million. Analyst firms have taken notice, with Griffin Securities maintaining a Buy rating and a price target of $310, citing robust RPO growth.

Citi also maintained its Buy rating, raising Autodesk's price target to $325, while HSBC (LON:HSBA) upgraded Autodesk from Hold to Buy with a new price target of $299.

Goldman Sachs (NYSE:GS) shifted its stance from Sell to Neutral, raising the price target to $295, while Oppenheimer maintained its Outperform rating and increased its price target to $300.

Autodesk's transition to a subscription model and system consolidation by customers have contributed to a more predictable and robust earnings growth trajectory. The company is on track to achieve its fiscal year 2026 operating margin targets of 38-40% ahead of schedule in fiscal year 2025.

Autodesk has also successfully implemented a direct customer billing transaction model in North America, leading to an 11% increase in its full-year 2025 revenue growth guidance.

InvestingPro Insights

Autodesk, Inc. (NASDAQ:ADSK) has been a focal point for investors seeking growth in the tech sector. According to recent data from InvestingPro, Autodesk boasts a remarkable gross profit margin of 91.92% for the last twelve months as of Q2 2025, reflecting the company's efficiency in managing its production costs and strong pricing power. With a market capitalization of $54.4 billion, Autodesk is a significant player in its industry, underpinned by a revenue growth of 11.9% in Q2 2025, demonstrating its ability to expand its market presence and sales.

InvestingPro Tips highlight that Autodesk is trading at a high earnings multiple, with a P/E ratio of 51.15, which suggests that investors are willing to pay a premium for the company's earnings potential. This is supported by the company's performance over the last three months, with a price total return of 18.27%, indicating strong investor confidence in the company's trajectory. Moreover, analysts have revised their earnings upwards for the upcoming period, signaling optimism about Autodesk's future financial results.

For those looking to delve deeper into Autodesk's financial metrics and strategic positioning, InvestingPro provides a comprehensive suite of additional tips, with 16 more insights available that can guide investment decisions. These insights include the company's debt levels, valuation multiples, and return metrics, which are crucial for a well-rounded investment analysis. To explore these further, investors can visit InvestingPro Autodesk for an in-depth look at Autodesk's financial health and market potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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