On Monday, KeyBanc Capital Markets adjusted its outlook for Autodesk Inc (NASDAQ:ADSK)., a software company listed on NASDAQ:ADSK, by reducing its price target from $320.00 to $305.00. Despite the revision, the firm maintained its Overweight rating on the company's shares.
KeyBanc's decision came in the wake of an ongoing accounting investigation at Autodesk, with no fresh updates since April 25, 2024. The firm's analyst noted that, based on checks with resellers, there was a modest pull-forward activity in April and May.
This is expected to precede a change in billing transactions scheduled for June. As a result of these activities, the analyst anticipates robust fiscal first-quarter results for Autodesk, with guidance for the second quarter likely to be in line or slightly lower.
Additionally, KeyBanc has revised its fiscal year 2026 estimates for Autodesk to better reflect the impact of the company's billing transaction change. The ongoing accounting investigation has introduced a degree of near-term uncertainty, which has influenced KeyBanc's decision to modestly lower the price target for Autodesk shares.
The analyst's comments provided insight into the rationale behind the updated estimates, citing the pull-forward activity as a potential indicator of strong performance in the near term, while also accounting for the changes expected in the company's billing process.
Autodesk, known for its design and engineering software, has not provided any new information regarding the accounting investigation since late April. The market will be looking forward to the company's forthcoming financial results to assess the impact of the billing changes and the progress of the accounting probe.
InvestingPro Insights
As investors digest KeyBanc Capital Markets' revised outlook on Autodesk Inc. (NASDAQ:ADSK), a glance at the current InvestingPro data can offer additional context. Autodesk boasts a robust gross profit margin of 91.58% over the last twelve months as of Q4 2024, reflecting its strong market position and efficient operations. However, it's worth noting that the company is trading at a high earnings multiple, with a P/E ratio of 52.12, suggesting a premium valuation in the market.
InvestingPro Tips highlight that Autodesk is trading at a high Price / Book multiple of 25.51 and operates with a moderate level of debt, which could be a point of consideration for investors seeking a balance between growth and financial stability. Analysts predict the company will be profitable this year, which is a positive sign amidst the ongoing accounting investigation. These insights, along with the additional 20+ InvestingPro Tips available at https://www.investing.com/pro/ADSK, could help investors make more informed decisions. For those interested in a deeper analysis, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Autodesk's next earnings date is set for May 23, 2024, which will be a critical moment for investors to watch. The company's fair value, as estimated by analysts, stands at $294, while InvestingPro's fair value calculation is slightly lower at $264.67, providing a range for investors to consider when evaluating the stock's potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.