Autodesk, Inc. (NASDAQ:ADSK) is one of the AI Stocks on the Market’s Radar. On October 8, Piper Sandler analyst Clarke Jeffries reiterated an Overweight rating on the stock with a $373.00 price target. Analysts at the firm highlighted Vertical AI progress and new monetization model as key drivers for the stock. The firm further noted that the investments made in operationizing generative AI is “very close to bearing fruit”. “Neural CAD (& more) Shows the Promise of Autodesk’s Investment in Vertical AI; A ...

Core Viewpoint - Autodesk's stock has underperformed in the past six months, declining 10%, while facing challenges from a new transaction model, restructuring efforts, and macroeconomic uncertainties [1][2]. Group 1: Performance Overview - Autodesk shares have dropped 10% over the last six months, compared to a 0.5% decline in the Zacks Internet-Software industry and a 6.4% decline in the S&P 500 index [1]. - The stock has slightly outperformed the Zacks Computer and Technology sector, which saw a decline of 10.2% during the same period [1]. Group 2: Growth Drivers - Autodesk is making progress in high-growth segments such as Construction and Manufacturing, adding nearly 400 new construction customers in Q4 of fiscal 2025 [3]. - The company is seeing strong adoption of its cloud-based platforms like Fusion and Forma, which enhance productivity and reduce costs for customers [3]. - Investments in AI, such as the AutoConstrain feature in Fusion, are improving product capabilities and user efficiency [4]. - The strategic focus on converging design and manufacturing workflows positions Autodesk well to meet evolving industry needs [4]. Group 3: Challenges - Autodesk faces intense competition in its core verticals, with competitors like Trimble in AEC and Dassault Systemes and Siemens in manufacturing [5]. - The ongoing shift from perpetual licenses to cloud-based subscriptions is pressuring top-line growth, alongside higher operating expenses and restructuring costs [6]. - Sustained earnings improvement will depend on Autodesk's ability to drive meaningful revenue growth over time [6]. Group 4: Guidance and Estimates - Autodesk expects non-GAAP earnings per share in the range of $2.14-$2.17 and revenues between $1.60-$1.61 billion for Q1 of fiscal 2026 [7]. - The Zacks Consensus Estimate for Q1 fiscal 2026 earnings is $2.14 per share, indicating a year-over-year growth of 14.44%, with revenues expected to increase by 13.32% to $1.61 billion [8]. - Autodesk has beaten the Zacks Consensus Estimate for earnings in each of the last four quarters, with an average surprise of 5.73% [8]. Group 5: Conclusion - Despite near-term challenges, Autodesk shows promise in key growth areas like cloud, AI, and construction, suggesting a cautious approach for investors [10]. - A significant portion of Autodesk's revenues comes from international operations, making it vulnerable to foreign currency fluctuations, particularly with a strengthening U.S. dollar [11].