Autodesk (ADSK – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Elizabeth Porter from Morgan Stanley maintained a Buy rating on the stock and has a $385.00 price target.
Elizabeth Porter’s rating is based on several strategic factors that suggest a positive outlook for Autodesk’s stock. One of the main considerations is the potential for improved communication and execution following the activist investor Starboard’s plan to nominate new directors. This move is expected to address investor frustrations and enhance transparency, which could lead to better management strategies and confidence in achieving margin expansion targets.
Furthermore, despite a softening demand outlook in the architecture sector, Autodesk’s strong business model, characterized by high retention rates and pricing power, supports a sustainable growth trajectory. The company’s ability to reduce costs effectively is seen as a protective measure for its margins and free cash flow, which remains undervalued by the market. These factors combined provide a compelling case for a Buy rating on Autodesk’s stock.
In another report released today, Barclays also maintained a Buy rating on the stock with a $365.00 price target.