In a report released today, Taylor McGinnis from UBS maintained a Buy rating on Autodesk, with a price target of $385.00.
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Taylor McGinnis has given his Buy rating due to a combination of factors that highlight Autodesk’s strong growth potential and strategic positioning. The management’s positive outlook on revenue growth and the achievement of a 41% EBIT margin target by FY29 were key considerations. The company’s focus on vertical SaaS, combined with durable low-teens revenue growth and expected margin expansion, supports the potential for sustained mid-teens-plus EPS and free cash flow growth in the coming years.
Additionally, Autodesk’s approach to monetizing AI through API-based pricing and its efforts to enhance data connectivity for enterprise systems are seen as promising. Despite initial concerns about customer acceptance, the response to API charges has been positive, indicating a measured and strategic approach. The company’s emphasis on high-growth areas such as construction, infrastructure, and Fusion, alongside its focus on new business and cross-sell opportunities, further reinforces the Buy rating.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $385.00 price target.