Jefferies Cuts PT on Autodesk (ADSK) into Analyst Day; Sees Suites as More Long-Term Growth Driver

Jefferies is keeping its Hold rating on Autodesk (Nasdaq: ADSK) while lowering its price target 15 percent from $47 to $40.

Based on recent analysis of its Suites strategy, Jefferies doesn't license see revenues being driven higher in the near term. Over time, however, subscription growth should improve. Jefferies comments: "plans to monetize suites through the tail of subscription revenue where subscriptions are a higher prices as a percentage of full license than many of the subscription plans today. They also intend to make subscriptions with suites more sticky with web services that are otherwise unavailable to customers. ADSK mgmt believes it can achieve around 20% total ASP uplift over time (3-5 years) with suites."

The comments were being made ahead of an analyst day on Wednesday, June 29th.

Jefferies cut FY13 estimates slightly on the call: FY13 EPS from $2.10 to $2.00, Q113 from 49 to 47 cents, Q213 from 53 to 51 cents, and Q313 from 52 to 48 cents.

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