Credit Suisse Raises Price Target on Autodesk (ADSK) But Remains Skeptic in The Near-Term
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Price: $251.66 -2.44%
Rating Summary:
36 Buy, 9 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
36 Buy, 9 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Credit Suisse is reiterating its Neutral rating on shares of Autodesk (NASDAQ: ADSK) while is raises its price target from $35 to $40.
The company reported its Q1 results ahead of expectations with $528.3 million in revenue and EPS of $0.40, Street was anticipating $522.8 million in revenue and EPS of $0.37. The upside is due to license revenue of $323 million and operating margins of 22.5%.
ADSK raised its FY12 revenue guidance from a growth of 10% to 12% and now sees operating margins increasing by at least 200 bps.
The firm is raising its FY12 revenue and EPS estimates from $2.148 billion and $1.61 to $2.186 billion and $1.66. It is also increasing its FY13 and FY14 estimates from $1.93 and $2.32 to $2.02 and $2.46.
Credit Suisse comments, "we believe that investors will be increasingly focused on margin leverage over the next fiscal year-particularly given the company's long-term operating margin target of at least 30%. We expect the manufacturing segment to continue to perform well in the near term, but we remain cautious on the near-term recovery in the AEC and civil segments."
For more ratings news on Autodesk click here and for the rating history of Autodesk click here.
Shares of Autodesk closed at $44.39 yesterday.
The company reported its Q1 results ahead of expectations with $528.3 million in revenue and EPS of $0.40, Street was anticipating $522.8 million in revenue and EPS of $0.37. The upside is due to license revenue of $323 million and operating margins of 22.5%.
ADSK raised its FY12 revenue guidance from a growth of 10% to 12% and now sees operating margins increasing by at least 200 bps.
The firm is raising its FY12 revenue and EPS estimates from $2.148 billion and $1.61 to $2.186 billion and $1.66. It is also increasing its FY13 and FY14 estimates from $1.93 and $2.32 to $2.02 and $2.46.
Credit Suisse comments, "we believe that investors will be increasingly focused on margin leverage over the next fiscal year-particularly given the company's long-term operating margin target of at least 30%. We expect the manufacturing segment to continue to perform well in the near term, but we remain cautious on the near-term recovery in the AEC and civil segments."
For more ratings news on Autodesk click here and for the rating history of Autodesk click here.
Shares of Autodesk closed at $44.39 yesterday.
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