Wedbush Reiterates OP Rating Leading into Autodesk (ADSK) Q1 Results

Wedbush reiterates their Outperform rating on Autodesk (NASDAQ: ADSK), and is maintaining a price target of $69.00, leading up to to release of the 1Q results (to be announced 05/19/2015). ADSK ended the 4Q14 with $40M in shippable backlog, and the 1Q expectations look modest as 1Q guidance anticipates a license change of -8% Q/Q, a 3% increase Y/Y.

Wedbush analyst, Steve Koenig, commented on ADSK, saying, "The tone of our contacts (all North American) has turned somewhat negative. Contacts reported Y/Y license growth from -15% to flat in 1Q. They attributed the downturn to the March 6th expiration of license upgrades, and secondarily to the limited number of 1Q promotions. They aren’t yet seeing license stockpiling ahead of the termination of perpetual licenses on stand-alone products at the end of this fiscal year. Contacts also noted slower-than-expected license activity to start 2Q, and minimal desktop subscriptions. More positively, large (Platinum) resellers in our checks exceeded expectations and had improved outlooks; they appear to be benefiting from tighter coordination with the company and new territory rules that took effect in February. Also, ADSK introduced a variety of new rebate promotions at the start of 2Q."

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 $57.27 yesterday.

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