Autodesk stock price target raised by UBS to $400 on consistent execution

Investing.com - UBS raised its price target on Autodesk (NASDAQ:ADSK) to $400 from $385 while maintaining a Buy rating, citing the company’s consistent execution and reassuring growth outlook. The new target represents significant upside from the current stock price of $301.38, with InvestingPro data showing Autodesk is currently trading below its Fair Value.

The firm highlighted Autodesk’s 12% constant currency adjusted revenue growth in the third quarter of fiscal 2026, along with projected growth of approximately 11% in adjusted revenues and 18% in adjusted billings for the fourth quarter, which provides reassurance about sustainable low-teens growth. This aligns with Autodesk’s impressive 13.78% revenue growth over the last twelve months, according to InvestingPro data.

UBS noted that while Autodesk has not yet provided guidance for fiscal 2027, the company indicated that billings growth is expected to remain elevated in the first quarter of fiscal 2027 before eventually converging with underlying revenue growth over time.

The research firm also pointed to Autodesk’s disciplined execution, evidenced by a 50 basis point increase in its fiscal 2026 operating margin guidance to 37.5%.

UBS views Autodesk’s current valuation of 25 times calendar year 2026 enterprise value to free cash flow as attractive relative to vertical software-as-a-service peers, given the company’s growth profile. While the current P/E ratio stands at 57.16, analyst targets suggest potential upside, with the highest price target reaching $430. Investors can access more detailed valuation metrics and 13 additional ProTips for Autodesk through InvestingPro.

In other recent news, Autodesk reported strong fiscal third-quarter results, with revenue growth of 18% year-over-year, surpassing expectations. This performance was driven by outperformance in the Architecture, Engineering, and Construction segment, as well as improved online store sales. The company’s impressive earnings led to several analysts adjusting their price targets. Baird raised its price target to $377, citing the report as one of Autodesk’s best in recent history. Similarly, Rosenblatt increased its target to $375, noting the revenue growth exceeded their forecasts. DA Davidson and Stifel both maintained their Buy ratings and set their price targets at $375, highlighting the company’s solid top and bottom-line performance. BMO Capital also adjusted its target to $343, describing the results as a demonstration of sequential improvement. These developments reflect a positive consensus among analysts regarding Autodesk’s recent performance.

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