BMO Capital analyst Daniel Jester has maintained their neutral stance on ADSK stock, giving a Hold rating today.
Daniel Jester has given his Hold rating due to a combination of factors influencing Autodesk’s current financial outlook. The macroeconomic environment remains challenging, posing a barrier to immediate growth prospects. Additionally, the company is undergoing significant changes, including a restructuring that impacts a substantial portion of its workforce, primarily in sales and marketing, to align with its evolving business model.
Despite these challenges, Autodesk has shown some positive signs, such as a notable increase in calculated billings and better-than-expected performance in margins, EPS, and cash generation. However, the revenue growth guidance for FY26 appears conservative, reflecting uncertainties in the macro environment and potential adjustments in the sales organization. The transition in the business model is expected to continue affecting results into FY27, and the new CFO’s cautious approach to long-term growth projections adds to the uncertainty. Consequently, Jester views the near-term risk and reward as relatively balanced, justifying a Hold rating.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $335.00 price target.