Computer-Aided Design Leader Autodesk Scores Fresh Buy Rating

Computer-aided design software firm Autodesk (ADSK) received a fresh buy rating on Wednesday from a Wall Street analyst. Autodesk stock is near a three-year high.

Wells Fargo analyst Michael Turrin initiated coverage of Autodesk stock with an overweight rating and a price target of 340.

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On the stock market today, Autodesk stock rose 1% to close at 289.19. Earlier in the session, it notched a nearly three-year high of 289.33.

In a client note, Turrin said Autodesk has a “cleaner path forward for reaccelerating revenue growth” thanks to recent business model transitions. The firm also is poised to return to a 30%-plus free-cash-flow margin, he said.

Autodesk has successfully transitioned its well-entrenched base of customers to a recurring revenue business model, he said.

Autodesk Stock Is A Recent Breakout

The San Francisco-based company is a leading provider of design software for the architecture, engineering, construction, manufacturing, and media industries.

On Aug. 26, Autodesk stock broke out of a cup-with-handle base at a buy point of 256.05, according to IBD MarketSurge charts.

Autodesk stock ranks first out of 13 stocks in IBD’s Computer Software-Design industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 92 out of 99.

IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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