Autodesk ‘Not as Cheap’ – JPMorgan

By Sam Boughedda

A JPMorgan analyst moved shares of Autodesk (NASDAQ:) to Neutral from Not Rated, setting a price target of $203 per share.

In a wide-ranging note on major industrial software stocks, the analyst said the firm acknowledges the quality but is aware the macro can play a role in the ability of the company to hit its targets, which rely heavily on growth.

“Evaluating the stocks here, ADSK stands out as the only company that has explicitly guided to higher operating margins in the years ahead, a positive that differentiates,” stated the analyst when discussing various stocks.

The analyst explained that a change in the timing of collections to an annual cycle from the front loading prior at Autodesk will be “a drag to FCF in the year the change takes effect (next year).”

“ADSK is not as cheap and we like the long-term growth story, but believe that the macro is uncertain and Street expectations may not be reset on FCF, and there is likely a better entry point at some stage,” the analyst added.

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