Daniel Jester, an analyst from BMO Capital, maintained the Hold rating on Autodesk (ADSK – Research Report). The associated price target remains the same with $324.00.
Daniel Jester has given his Hold rating due to a combination of factors surrounding Autodesk’s current situation. The recent agreement with Starboard, which adds two new members to Autodesk’s board, is seen as a positive step that reduces distractions for management amidst a challenging macroeconomic environment. This allows the company to focus on its core business operations without the uncertainty of a proxy vote looming over them.
Despite the potential for improved profitability and the pressure from Starboard to achieve higher EBIT margins, Jester remains cautious. He acknowledges that while Autodesk’s long-term prospects are promising, the near-term risks and uncertainties in the broader market overshadow the company’s specific growth drivers. Consequently, he views this period as a transitional phase, with the expectation that more significant catalysts will emerge later in the year, particularly with the anticipated analyst day providing further insights.
In another report released yesterday, Bank of America Securities also maintained a Hold rating on the stock with a $290.00 price target.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ADSK in relation to earlier this year.