The rule seems to hold, for the most part, that analyst kudos give a stock an edge. That’s just what happened today for Autodesk (NASDAQ:ADSK), as the architectural software maker landed some praise from Baird and gained fractionally on the news. Robert W. Baird, via analyst Joe Vruwink, noted that Autodesk might be in line to offer a real “upside surprise.”
Vruwink noted that billings in the Architectural Billings Index (ABI) were near a “historic bottom,” which suggested that further declines were unlikely. Indeed, that index started showing signs of new life back in November, and connecting the ABI to Autodesk’s performance is a fairly natural move, with the ABI serving as the “…key leading indicator.” Vruwink also gave a nod to Bentley Systems (NASDAQ:BSY) for much the same reasons.
A Mixed Future Afoot
You have to give Autodesk some credit, as it’s been actively working with some of the latest technologies to make its product sparkle. Workshop XR, for example, incorporates elements of augmented reality and virtual reality into its processes. These are fairly natural fits for architecture, especially these days—being able to see a structure being designed can’t help but be valuable—but it’s not all the market is facing. There’s the ongoing specter of the commercial real estate crisis brewing. With some estimates saying that $1 trillion in debt will have to be re-engineered as the return-to-office mandates fall flat against an ongoing jobs issue, new commercial real estate construction might suffer.
Is Autodesk a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ADSK stock based on 10 Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 25.77% rally in its share price over the past year, the average ADSK price target of $238.82 per share implies 4.43% upside potential.
