Morgan Stanley maintains Autodesk stock at Overweight, $330 target
Investing.com
Published May 21, 2025 01:13PM ET
On Wednesday, Morgan Stanley reiterated its Overweight rating on Autodesk (NASDAQ:ADSK) stock with a steady price target of $330.00. The target aligns closely with InvestingPro 's Fair Value calculation, while the company maintains impressive gross profit margins of 92% and commands a market capitalization of $63.7 billion. The firm's analysis followed the release of the latest Architecture Billings Index (ABI) data, which indicated a persistent weakness in architecture billings month-over-month. The ABI for April showed a decrease to 43.2 from 43.1 in March, suggesting a continued decline in underlying demand.
Elizabeth Porter from Morgan Stanley observed that despite the downward trend in the ABI, other forward-looking indicators such as inquiries and design contracts showed signs of stabilization, even though they remained in decline. In contrast, reseller data indicated consistent demand for Autodesk's products, reflected in the company's solid 11.5% revenue growth over the last twelve months. According to InvestingPro 's analysis, the company maintains a GOOD overall Financial Health score, supported by strong profitability metrics.
The Morgan Stanley analyst expects Autodesk to report first-quarter earnings that align with forecasts and to reaffirm its guidance for fiscal year 2026, bolstered by earnings reports from peers in the industry. The firm's position is underpinned by the mixed signals from different market indicators, with the ABI's downward trend being offset by steady demand as seen through reseller channels.
The ABI is a leading economic indicator of construction activity, reflecting the approximate nine to twelve-month lead time between architecture billings and construction spending. The index’s decline points to a potential slowdown in future construction projects, which could impact Autodesk's business, given its significant stake in the architecture, engineering, and construction industries.
Autodesk is a global leader in 3D design, engineering, and entertainment software, and its stock performance is closely watched by investors interested in the technology and construction sectors. The company's financial outlook, as suggested by Morgan Stanley, will be of interest to stakeholders looking to gauge the impact of current macroeconomic conditions on the industry. Trading at a P/E ratio of 57.5, the stock currently shows momentum with a 34% return over the past year. For deeper insights into Autodesk's valuation and growth prospects, InvestingPro offers 13 additional exclusive tips and a comprehensive Pro Research Report, part of its coverage of over 1,400 US stocks.
In other recent news, Autodesk has been the focus of several analyst updates and market evaluations. Citi analyst Tyler Radke raised the price target for Autodesk to $374, maintaining a Buy rating, citing potential margin expansion and improved near-term growth expectations despite mixed reseller survey results. UBS also reiterated a Buy rating with a $370 target, predicting a 14% year-over-year growth in the first quarter of fiscal year 2026 and highlighting the importance of pricing in driving growth. Stifel maintained a Buy rating with a $310 target, noting mixed feedback from channel partners but projecting that Autodesk's upcoming earnings report will align with expectations.
Get The News You Want
KeyBanc Capital Markets kept an Overweight rating with a $323 target, anticipating that Autodesk's first quarter results will meet expectations while suggesting a slight reduction in growth guidance due to a varied macroeconomic environment. DA Davidson maintained a Neutral rating with a $265 target, emphasizing Autodesk's over 20% organic growth in its Construction Cloud segment and focusing on operating efficiency improvements. These recent developments underscore Autodesk's ongoing strategic adjustments and market positioning, with analysts closely watching the company's response to economic challenges and its future growth trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.