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Autodesk, Inc. (ADSK), headquartered in San Francisco, California, provides 3D design, engineering, and entertainment technology solutions. Valued at $69.1 billion by market cap, the company's two-dimensional and three-dimensional products are used across industries and in the home for architectural design, mechanical design, geographic information systems and mapping, and visualization applications.
Shares of this global leader in software have outperformed the broader market considerably over the past year. ADSK has gained 58.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31%. In 2024, ADSK stock is up 32%, surpassing the SPX’s 25.2% rise on a YTD basis.
Zooming in further, ADSK’s outperformance is also apparent compared to the Technology Select Sector SPDR Fund (XLK).The exchange-traded fund has gained about 26.4% over the past year. Moreover, ADSK’s returns on a YTD basis outshine the ETF’s 21.4% gains over the same time frame.
ADSK's impressive performance can be credited to the growing need for immersive and engaging 2D, 3D, VR, and AR content.
On Aug. 29, ADSK shares closed up more than 1% after reporting its Q2 results. Its revenue increased 11.9% year over year to $1.51 billion, exceeding Wall Street expectations of $1.48 billion. The company’s adjusted EPS of $2.15, beat Wall Street estimates of $2.
For the current fiscal year, ending in January 2025, analysts expect ADSK’s EPS to grow 32% to $5.73 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 24 analysts covering ADSK stock, the consensus is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, one “Moderate Buy,” and nine “Holds.”
This configuration is more bullish than a month ago, with 13 analysts suggesting a “Strong Buy.”
On Nov. 22, Wells Fargo & Company (WFC) kept an “Overweight” rating and raised the price target on ADSK to $350, implying a potential upside of 8.9% from current levels.
While ADSK currently trades above its mean price target of $309, the Street-high price target of $360 suggests an upside potential of 12.1%.
