Investing.com -- Bank of America reinstated coverage of Autodesk with a Buy rating and a $300 price objective on Tuesday, arguing the design software company is well-positioned to weather AI disruption and could see its stock rise roughly 27% from current levels.

Shares of Autodesk were trading at $236.07 as of Monday’s close, down about 20% year-to-date, a decline the bank attributed to broader investor concerns about AI’s impact on legacy software businesses.

However, BofA analyst Tomer Zilberman said those concerns are overdone in Autodesk’s case.

"Autodesk’s data, 3D context, and decade-long AI investment give it structural advantages that are hard to replicate," the analyst wrote. He explained that 3D AI requires proprietary design and construction data along with deep geometric understanding that generic AI models cannot replicate from publicly available information.

As such, BofA sees AI as a revenue opportunity rather than a threat. Zilberman expects Autodesk to use AI to expand the scope of its tools and raise average selling prices through a tiered monetization strategy that introduces consumption-based billing for high-value AI workloads.

AI add-ons like AutoConstrain have already reached 60% user acceptance rates, the note said.

"We think AI is an upsell opportunity for ADSK, rather than a risk, with AI helping to expand the scope and depth of the Autodesk’s tools," Zilberman wrote.

The analyst projected revenue growth of 13% and 10% year-over-year over the next two years, with free cash flow rising from $2.4 billion in fiscal 2026 to $2.8 billion in fiscal 2027.

On valuation, the $300 price objective is based on 21 times the bank’s calendar year 2027 free cash flow estimate, a slight discount to the design software peer group average of 23 times, which BofA said reflects near-term risks from the company’s ongoing go-to-market restructuring.

Autodesk has cut roughly 15% of its workforce over the past year as it shifts its sales model toward automation and self-service, reducing direct sales roles after completing a back-end billing transition. BofA expects this to weigh on first-half billings growth before a recovery in the second half, supported by a large cohort of enterprise contract renewals in the fourth quarter.

"Our Buy rating is based on our view that the company is well protected against AI disruption and current guidance leaves room for upside if the improvement in execution from 4Q continues over the next several quarters," Zilberman concluded.