Autodesk's (ADSK) Overweight Rating Maintained at Pacific Crest Following Checks
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Pacific Crest maintained an Overweight rating on Autodesk (NASDAQ: ADSK) with a price target of $81. Analyst Monika Garg said checks pointed to an in-line quarter and guidance.
"We spoke with 15+ resellers in North America and Europe and expect Autodesk to report an in-line quarter and to reiterate yearly guidance. We believe ADSK can achieve its 20% subscription CAGR in the medium to long term. However, we picked up on confusion in the channel about subscription metrics, which, combined with the stock being up 21% since last earnings, could limit near-term upside," said Garg.
"Our channel contacts feel confident that they will hit their revenue and net subscription quotas. Autodesk will likely reiterate yearly guidance. Autodesk is realigning its performance metrics in the channel with those it uses to guide the Street. Net subscription adds is a new metric the channel is just beginning to track, but it's generating some confusion, as it is midyear and y/y comparisons are not as clear given perpetual licenses were sold last year. Some channel partners are in the midst of installing new systems to track subscription metrics" continued the analyst.
Garg added, "Autodesk's transition has been rocky, but we believe it has been executing well the last few quarters. Though we believe ADSK can achieve its 20% subscription CAGR medium to longer term, given the confusion in the channel and the stock being up 21% since last earnings, we see limited upside near term."
Shares of Autodesk closed at $76.90 yesterday.
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