Computer-aided design software firm Autodesk received a fresh buy rating on Wednesday from a Wall Street analyst. Autodesk stock is near a three-year high.
Wells Fargo analyst Michael Turrin initiated coverage of Autodesk stock with an overweight rating and a price target of 340.
On the stock market today, Autodesk stock rose 1% to close at 289.19. Earlier in the session, it notched a nearly three-year high of 289.33.
In a client note, Turrin said Autodesk has a "cleaner path forward for reaccelerating revenue growth" thanks to recent business model transitions. The firm also is poised to return to a 30%-plus free-cash-flow margin, he said.
Autodesk has successfully transitioned its well-entrenched base of customers to a recurring revenue business model, he said.
Autodesk Stock Is A Recent Breakout
The San Francisco-based company is a leading provider of design software for the architecture, engineering, construction, manufacturing, and media industries.
On Aug. 26, Autodesk stock broke out of a cup-with-handle base at a buy point of 256.05, according to IBD MarketSurge charts.
Autodesk stock ranks first out of 13 stocks in IBD's Computer Software-Design industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 92 out of 99.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
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