Argus Research Upholds Buy Rating on Autodesk, Lowers Price Target to $265

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Argus Research recently issued a rating on Autodesk ($NASDAQ:ADSK) and downgraded it from Buy to a lower price target of $265. Autodesk is a world leader in 3D design, engineering, and entertainment software, best known for its AutoCAD product. The company has been experiencing strong financial performance over the past several quarters, with increasing revenue and profits. In its assessment of Autodesk’s outlook, Argus Research cited several factors that had led to their decision to lower the price target. They noted that while the company had seen strong growth in new customer acquisition, there is a risk of saturation in some segments of the market. Additionally, they cited increased competitive threats from rivals as another factor that could limit Autodesk’s future growth. They noted that Autodesk was well-positioned to benefit from the continued demand for 3D design software and other services related to its core offerings.

In addition, they also pointed out that Autodesk has strong cash reserves and a healthy balance sheet, which could help it weather any near-term dips in revenue or profits. Although the company’s stock price has dropped since the announcement of the lowered price target, Argus Research believes that the company’s fundamentals remain sound and is confident in its Buy rating.

Share Price

On Thursday, AUTODESK stock opened at $195.7 and closed at $201.1, up by 2.4% from previous closing price of 196.4. Despite this small uptick, news surrounding Autodesk has been largely negative lately, which has caused investors to be wary of the company’s prospects. Argus’s decision to maintain its Buy rating implies that it believes Autodesk is still well-positioned to succeed despite the current challenges. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Autodesk. More…

Key Ratios Snapshot

Some of the financial key ratios for Autodesk are shown below. More…

Analysis

At GoodWhale, we recently conducted an analysis of AUTODESK‘s wellbeing. According to our Risk Rating, AUTODESK is a high risk investment when it comes to financial and business aspects. Specifically, our analysis detected two critical risk warnings: one in the income sheet, and one in the balance sheet. If you’d like to learn more, simply register with us and you’ll be able to see the in-depth details of our findings. We believe this information will be extremely helpful when it comes to making the best decision for your investments. More…

Peers

In the world of architectural and engineering design software, Autodesk Inc. is a giant. Its main competitors are Beijing YJK Building Software Co Ltd, Nemetschek SE, and ZUKEN Inc. All three companies offer similar products and services, but Autodesk Inc. has the lion’s share of the market.

– Beijing YJK Building Software Co Ltd ($SZSE:300935)

Beijing YJK Building Software Co Ltd is a leading provider of enterprise software solutions in China. The company offers a comprehensive suite of products and services that enable organizations to streamline their operations, improve their productivity, and reduce their costs. Beijing YJK Building Software Co Ltd has a market cap of 2.21B as of 2022, a Return on Equity of 2.61%. The company’s products and services are used by a wide range of industries, including manufacturing, construction, healthcare, education, and government. Beijing YJK Building Software Co Ltd has a strong focus on innovation and R&D, and has a number of patents and intellectual property rights. The company’s products are distributed through a network of resellers and distributors in China and around the world.

– Nemetschek SE ($LTS:0FDT)

Nemetschek SE is a holding company for a group of companies that develop software solutions for the AEC industry. The company operates in two segments, Architecture, Engineering, and Construction (AEC) and Media & Entertainment (M&E). The AEC segment provides software solutions for the design, construction, and operation of buildings and infrastructure. The M&E segment provides software solutions for the creation, distribution, and monetization of digital content.

Nemetschek SE has a market cap of 5.53B as of 2022 and a Return on Equity of 22.14%. The company’s strong market position and financial performance are due to its diversified portfolio of software products and solutions, which cater to the needs of the AEC and M&E industries.

– ZUKEN Inc ($TSE:6947)

Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the largest banks in the world with total assets of over $2.5 trillion. MUFG has a long history dating back to the Meiji period in Japan and is currently one of the leading banks in Asia. The company offers a wide range of financial services including retail banking, corporate banking, investment banking, and asset management. MUFG has a strong presence in Japan with over 3,000 branches and a market share of around 20%. The company also has a significant international presence with operations in over 50 countries.

Summary

Argus Research recently released an analysis on Autodesk, maintaining its Buy rating but reducing the price target to $265. The analysis noted that so far, news regarding the company has been mostly negative. However, they believe that Autodesk’s long-term prospects remain positive, citing its development of new products, strong financial position, and emerging technologies as sources of potential upside. Though the short-term risks have forced an adjustment to their price target, analysts remain optimistic about Autodesk’s share value in the future.