UBS Remains Sidelined on Autodesk (ADSK) Following 2Q Beat
- Healthcare, tech stocks drive Wall Street higher
- Twitter (TWTR) Tops Q3 EPS by 4c; Announces Restructuring, Workforce Reduction
- Qualcomm (QCOM) to Acquire NXP Semi (NXPI) in $47B Deal
- Tesla (TSLA) Posts Q3 adj.-EPS of 71c
- Pre-Open Stock Movers 10/27: (PRQR) (OCN) (TWTR) Higher; (CYH) (GNC) (RNWK) Lower (more...)
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
UBS reiterated a Neutral rating on Autodesk (NASDAQ: ADSK), and raised the price target to $66.00 (from $58.00), following the company's 2Q earnings report. ADSK reported revenues of $551M and EPS of 0.05, ahead of $510M and -0.14 estimates.
Analyst Brent Thill commented, "Last chance buying of perpetual licenses drove a $40M Q2 rev beat and also created a $38M backlog. New model sub adds of 125K was respectable after Q1's 140K that benefited from promos & Q4 EBAs. Starting this Q4, recurring revs should represent ~95% of total revs, significantly improving visibility. In the LT, ADSK has the potential to be highly predictable & profitable as the subs base grows from current 2.8M vs. TAM 100M+ and op mgn expands from UBSe -7% this yr twd LT 30%+. However, near term path could still be uneven as: 1) new model subs need to grow fast enough to more than offset churn in the maint subs base, and 2) ARPS growth could be hampered by the mix of subs and promotions. The FY2020 goal of $6 FCF/share does seem more achievable to us than before, although tightly managed execution will be paramount."
Shares of Autodesk closed at $63.70 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Rosenblatt Upgrades NETGEAR (NTGR) to Buy
- F5 Networks (FFIV) PT Raised to $120 at Jefferies
- Jefferies Raises Price Target as Cheesecake Factory (CAKE) Posts 3Q Beat
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesUBS, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!