Autodesk Stocks Soar as Demand for Design Solutions Grows
Autodesk, Inc. (ADSK), based in San Francisco, California, specializes in 3D design, engineering, and entertainment technology solutions. The company holds a market capitalization of $69.1 billion. Its two-dimensional and three-dimensional products serve various industries as well as home users, assisting in architectural design, mechanical design, geographic information systems, mapping, and visualization applications.
Significant Market Gains Highlight Autodesk’s Success
In the past year, Autodesk’s shares have significantly outperformed the broader market. ADSK has risen by 58.5%, while the S&P 500 Index ($SPX) has increased by nearly 31%. Thus far in 2024, ADSK has climbed 32%, exceeding the SPX’s rise of 25.2% on a year-to-date basis.
Comparison with Technology Sector Reveals Strong Performance
Comparing Autodesk to the Technology Select Sector SPDR Fund (XLK), the differences are notable. The ETF saw gains of approximately 26.4% over the past year. Furthermore, Autodesk’s year-to-date returns outshine the ETF’s 21.4% growth.
Q2 Results Exceed Expectations
In terms of earnings, Autodesk has been performing well. On Aug. 29, ADSK shares increased by over 1% after reporting Q2 results. The company’s revenue rose by 11.9% year-over-year to reach $1.51 billion, surpassing Wall Street’s expectations of $1.48 billion. Additionally, Autodesk’s adjusted earnings per share (EPS) of $2.15 exceeded estimates of $2.
Positive Forecast for Upcoming Fiscal Year
Looking ahead to the current fiscal year ending in January 2025, analysts predict that Autodesk’s EPS will grow by 32% to $5.73 on a diluted basis. Notably, the company’s earnings surprise history shows consistent performance, having beaten consensus estimates in each of the last four quarters.
Analysts Show Confidence in Autodesk Stock
Among the 24 analysts who cover Autodesk, the consensus rating is a “Moderate Buy.” This classification includes 14 “Strong Buy” ratings, one “Moderate Buy,” and nine “Holds.” This sentiment reflects a more optimistic outlook than a month prior, where only 13 analysts rated it as a “Strong Buy.”
Wells Fargo Raises Price Target for Autodesk
On Nov. 22, Wells Fargo & Company (WFC) maintained an “Overweight” rating on Autodesk and raised its price target to $350, suggesting an 8.9% potential upside from current trading levels. Although ADSK is currently priced above the average target of $309, the highest price target of $360 indicates a potential upside of 12.1%.
On the date of publication, Neha Panjwani did not hold either directly or indirectly any positions in the securities mentioned in this article. All information and data in this article are solely for informational purposes. For additional details, please see the Barchart Disclosure Policy here.
The views and opinions expressed herein represent those of the author and do not necessarily reflect those of Nasdaq, Inc.
