J.P. Morgan analyst Alexei Gogolev reiterated a Hold rating on Autodesk yesterday and set a price target of $319.00.
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Alexei Gogolev has given his Hold rating due to a combination of factors influencing Autodesk’s current market position. The company reported strong third-quarter results, with growth in several key metrics and stable customer spending patterns. However, the transition to a new transaction model and annual billing for multiyear contracts, while beneficial this year, are expected to moderate in the next fiscal year.
Despite the positive performance, there are concerns about the sustainability of these growth drivers, as management has flagged potential challenges in the broader industry and the diminishing impact of current tailwinds. Additionally, while Autodesk’s valuation appears reasonable compared to its peers, the revenue growth adjusted for the new transaction model seems less impressive. These factors contribute to the decision to maintain a Hold rating, reflecting a balanced view of the company’s prospects.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $365.00 price target.
Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ADSK in relation to earlier this year.