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Autodesk (ADSK) Added to Credit Suisse Focus List; Sees 'Easy' EPS of $8.00

August 3, 2015 8:27 AM EDT
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Price: $255.18 +0.37%

Rating Summary:
    23 Buy, 14 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 8 | Down: 4 | New: 35
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Credit Suisse added Autodesk (NASDAQ: ADSK) to the U.S. and Global Focus List. The firm also reiterated an Outperform rating and price target of $80, suggesting upside of 58% to Friday's close.

Analyst Philip Winslow highlighted that business model changes will drive post-transition, "normalized" earnings power of $8.00 per share (on $6.344 billion in revenue) in FY2023. This as Wall Street has wanted a straightforward calculation of Autodesk's post-transition revenue, similar to Adobe's simple equation.

Calculating an "easy" way to EPS of $8.00, the analyst calculated that Autodesk maintains 1.717 million LT users and and 3.283 million users of the remainder of its product portfolio. They estimated an annual ASP of $563 per maintenance/subscription user. Multiplying each user base by its respective annual ASP, they calculated post-transition revenue of $6.302 billion.

The firm said they find this "easy" analysis as rather conservative, given that no growth in Autodesk's user base or additional upsell is considered.

For an analyst ratings summary and ratings history on Autodesk click here. For more ratings news on Autodesk click here.

Shares of Autodesk closed at $50.58 yesterday.



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