UPDATE: Autodesk (ADSK) PT Lowered to $355 but Credit Suisse Expects Less Cyclicality Than Prior Slowdowns

May 17, 2022 5:45 AM EDT
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Price: $201.11 -2.81%

Rating Summary:
    24 Buy, 11 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 2 | Down: 23 | New: 24
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(Updated - May 17, 2022 6:48 AM EDT)

Credit Suisse analyst Phil Winslow lowered the price target on Autodesk (NASDAQ: ADSK) to $355.00 (from $440.00) despite addressing a recurring fear that the buyside articulates: Will the company come under pressure due to their endmarket exposure to highly cyclical industries and European markets?

The analyst reiterated an Outperform rating, stating "With Autodesk’s transition to a subscription business model from perpetual licenses, we view Autodesk’s growth profile as significantly less volatile versus historical periods, and our analysis of the economic fallouts of the COVID-19 pandemic and the global financial crisis relative to Autodesk’s business trends underscores this thesis. Therefore, while Autodesk’s growth still appears directionally correlated to economic conditions, we believe Autodesk can still significantly grow (although at a slightly slower rate than previously expected) through near-term geopolitical and macroeconomic disruptions, as the company continues to benefit from the tailwind of transitioning its large installed base to subscriptions. Specifically, we are revising our revenue and EPS estimates for FY2023/FY2024 to $4,999.2/$5,626.6 million and $6.47/$7.63 from $5,115.4/$5,988.7 million and $6.81/$9.20, respectively."

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