Autodesk (ADSK) PT Raised to $253 at Rosenblatt, 'Stable Q2 Revenue and Margin Performance Despite Weak Macro'

Rosenblatt analyst Blair Abernethy raised the price target on Autodesk (NASDAQ: ADSK) to $253.00 (from $235.00) while maintaining a Buy rating.

The analyst comments "Autodesk reported Q2 FY24 results (Wednesday after market close), marginally above our revenue expectations, driving revenue of $1,345m (vs our $1,320.5m and consensus $1,320.4m), up 9% y-o-y (12% in CC). With Q2 operating margins at 36%, Non-GAAP EPS came in at $1.91 (vs our $1.72 and consensus $1.73). Autodesk expects little near-term change in the selling environment, and only marginally increased its revenue growth outlook of 8-9% in FY24, vs our prior ~8% expectation. Post Q2, we are marginally increasing our FY24 revenue forecast by ~0.5% to the 8.5% level and updating our FY25 revenue growth outlook to ~12% as we expect an incrementally improved macro environment and Digital Transformation trends in AEC and manufacturing to support demand for Autodesk’s products. Post quarter, we are rolling forward our valuation to FY25, which largely drives our target price increase to $253 (was $235). At current levels, we are maintaining our Buy rating."

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