Barclays Raises Price Target on Autodesk (ADSK) Ahead of 3Q
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Barclays reiterated an Overweight rating on Autodesk (NASDAQ: ADSK), and raised the price target to $81.00 (from $75.00), ahead of the company's 3Q earnings release. Barclays is expecting ~140k new model adds, up from 125k last quarter since this is the first quarter all of ADSK's unit volume funnels through new model subs. ADSK said some customers hoarded suites before they end-oflived on 8/1, which could have pulled forward some demand, but new model adds should still be higher q/q.
Analyst Saket Kalia commented, "We think 3Q revenue and subs will be fine, but 4Q faces a tough comparable, as 3Q benefits from unshipped backlog, prompting us to trim 4Q estimates. Tactically, for 3Q we think maintenance ARPS will be higher than expected, while we right-size our admittedly previously high new model ARPS. Net-net, this keeps 3Q the same, trims 4Q17 and FY18, but keeps FY19 and FY20 roughly unchanged - we raise our PT to $81 (from $75) based on ~20x (from ~18x) our FY20E FCF of ~$1B."
Shares of Autodesk closed at $78.46 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesBarclays, Earnings
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