AmTech Reiterates Buy on Autodesk (ADSK); Says Buy on Weakness

June 30, 2008 10:50 AM EDT

American Technology Research reiterates its Buy rating and $52 price target on Autodesk (Nasdaq: ADSK) following a meeting with management that has made the firm "incrementally more assured" about Autodesk's long-term growth prospects.

With shares of Autodesk down about 18% since the beginning of June, the firm recommends using this recent weakness to buy the stock. AmTech listed its key take-aways from the meeting with management:

• The emerging market opportunity remains very strong for Autodesk. Management is particularly excited about Russia, China and India.
  
• Progress against piracy has more long-term potential than we had anticipated. Surprisingly, management sees the US market as having the biggest opportunity for progress and sees China's own IP protection initiatives as benefiting ADSK in the long-term.
  
• After seeing product demos, we were particularly impressed with improved product interoperability, which should drive bundling and cross-selling in the long-term, as well as the prevalence of 3D capabilities throughout the product line.
  
• Separately, we are adjusting our estimates for the Moldflow acquisition and view management's reiteration of top-line guidance for FQ2 as a positive sign.
  
• We continue to believe Autodesk is significantly undervalued.

Autodesk, Inc. operates as a design software and service company.

Related Categories

Analyst Comments

Stocks Mentioned

Related Entities

• American Technology Research

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?