Canaccord Genuity Cuts Price Target on Autodesk (ADSK) to $65 Following 2Q16 Results

Canaccord Genuity reiterated a Buy rating on Autodesk (NASDAQ: ADSK), and cut price target to $65.00 (from $70.00), following the company's 2Q16 earnings report. Revenues and EPS were in-line and at the high-end of respective guidance ranges and calculated billings showed an upside to estimates. Autodesk reported Q2/16 revenue and non-GAAP EPS of $609.5M and $0.19.

Analyst Richard Davis commented, "The problem with model shifts is that the better the “good” cloud business progresses, the worse the legacy business looks. When you layer in Wall Street’s fear of China, you get a recipe for a volatile ADSK stock price. The good news is that if you stepped back a bit and listened to ADSK’s commentary about its execution and business transition, the trend matched up with the favorable outlook that we discussed in our past two preview notes. Again, we strongly contest that Autodesk is making important steps that will evolve the business to a more predictable, higher margin business that delivers up to date versions to customers on a timely basis. That is the definition of a competitive moat."

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 $50.00 yesterday.

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