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Autodesk (NASDAQ:ADSK) stocks Up 2% Friday after the architectural software company reported second-quarter results and guidance that investment firm Baird viewed as positive.
“FY25 forecasts are on the upside, with greater contribution from the new transaction model (which includes updates to “Billings/revenues were largely in line with our expectations,” analyst Joe Froenke wrote in a note to investors. “We had expected the reiteration of core guidance to be positive for the stock, but with core revenue/margins now improving, we believe Autodesk is likely to see additional strength in the near term. On a qualitative level, we thought this earnings call was one of the most informative in recent memory, as the solid execution and rebuilt track record (only reiterations/increases in guidance over the past six quarters) bring a better risk profile to the investment case.”
Froenke reiterated his outperform rating on Autodesk and raised his price target to $305 from $295.
Additionally, Froenke said he likes to set Autodesk up for the end of the year, citing the Autodesk University event in October and the third-quarter earnings release, which will likely include a reiteration of the $2.05 billion free cash flow target for fiscal 2026.
“The F2Q update is encouraging, and the company continues to cite the new transaction model as enabling future optimization and supporting revenue/margins in the long term,” Froenke added.
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