Autodesk ‘Not Cheap’ – JPMorgan

Autodesk ‘Not Cheap’ – JPMorgan

Written by Sam Bogda

A JPMorgan analyst has moved shares of Autodesk (NASDAQ ๐Ÿ™‚ to Neutral from Not Rated, and has set a target price of $203 per share.

In a wide-ranging note on key industrial software stocks, the analyst said the company recognizes quality but recognizes that macros can play a role in the company’s ability to achieve its goals, which depend heavily on growth.

โ€œWhen evaluating the stock here, ADSK stands out as the only company that has explicitly directed higher operating margins in the coming years, which is a positive highlight,โ€ the analyst stated when discussing the various stocks.

The analyst explained that the change in the timing of the clusters to a yearly cycle from the previous front loading in Autodesk would be a “pull to FCF in the year the change takes effect (next year)”.

“ADSK isn’t cheap and we like the long-term growth story, but we think the macro is uncertain and street expectations may not reset to FCF, and there’s likely to be a better entry point at some point,” the analyst added.

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