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With a market cap of $53.5 billion, Autodesk, Inc. (ADSK) provides 3D design, engineering, and entertainment technology solutions. The San Francisco, California-based company is renowned for its flagship products, such as AutoCAD, Revit, and Maya.
Shares of this software company have underperformed the broader market over the past 52 weeks. ADSK has soared 24.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 27.3%. In 2024, shares of ADSK gained 2.2%, compared to SPX’s 16.6% return on a YTD basis.
However, zooming in further, ADSK has outperformed the Cloud Computing 2X Shares Direxion’s (CLDL) 15% gain over the past 52 weeks and a 15.4% decline on a YTD basis.
Autodesk has underperformed relative to the S&P 500 Index due to unclear capital allocation, high stock-based compensation, and concerns over its exposure to the cyclical construction market. However, the stock rose 5.5% following its Q1 earnings release on Jun. 11 due to better-than-expected earnings and revenue, coupled with an impressive full-year outlook.
For the current fiscal year, ending in January 2025, analysts expect ADSK’s EPS to grow 27.9% year over year to $5.55. The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” and one “Strong Sell.”
On Aug. 15, Baird maintained an “Outperform” rating on Autodesk and raised the price target to $295, noting the company’s promising growth prospects amid a complex period of change.
The mean price target of $265.58 represents a premium of almost 7% to ADSK’s current levels. The street-high price target of $310 implies a potential upside of 24.9% from the current price.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
