Guggenheim raises Autodesk stock price target on strong quarter

Autodesk stock (NASDAQ:ADSK) saw its price target raised by Guggenheim to $283 from $277 following strong second-quarter results. The company reported billings and revenue that surpassed consensus estimates by 2% and 1.7% respectively. Autodesk's free cash flow and non-GAAP earnings per share also exceeded estimates. The firm showed impressive revenue growth of 18% over the past year, while adjusted New ACV declined by 40% year-over-year in the quarter.

The price target raise of about $40 million is attributed to improved demand conditions. Autodesk maintained a Buy rating with full-year revenue guidance increased by $135 million, including $60 million from the MaintainX acquisition and $36 million from strong second-quarter performance. The company reiterated non-GAAP margin guidance but lowered GAAP margins to account for the acquisition.

Management forecasted year-over-year margin improvement in fiscal 2028 and reiterated a 41% target for fiscal 2029. Autodesk's stock appears undervalued, with impressive gross profit margins of 92%.