Bank of America Securities analyst Michael Funk maintained a Hold rating on Autodesk (ADSK – Research Report) yesterday and set a price target of $335.00.
Michael Funk’s rating is based on a combination of factors, including the ongoing involvement of Starboard Value, which is pushing for changes in Autodesk’s board and governance structure. Starboard’s recent letter to shareholders highlights potential areas for value creation, particularly through margin expansion, which aligns with Autodesk’s recent efforts to improve profitability through workforce reductions.
Despite these positive signals, Funk maintains a Hold rating due to uncertainties surrounding the financial impact of these initiatives and the company’s future operating margin guidance. While the potential for margin improvement exists, the expected savings from the headcount reduction may not fully materialize due to additional spending. The price objective of $335 reflects a slight premium to the peer group average, justified by Autodesk’s robust business model and favorable margin profile, yet tempered by uncertainties in financial modeling.
In another report released on March 11, Berenberg Bank also reiterated a Hold rating on the stock with a $299.00 price target.
ADSK’s price has also changed slightly for the past six months – from $269.760 to $268.300, which is a -0.54% drop .