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Autodesk Delivered Solid Fiscal Q1 Beat and Raise, MaintainX Deal Raises Questions, RBC Says

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Autodesk (ADSK) posted a strong fiscal Q1 beat-and-raise quarter, but the company's $3.6 billion acquisition of MaintainX raises investor questions regarding organic growth and margins, RBC Capital Markets said in a note Friday.

RBC said that while the acquisition price seems "somewhat steep" initially, it seems "more reasonable looking forward a few years at elevated growth and as the foundation for operational expansion."

Also, Autodesk expressed confidence in being able to absorb margin dilution within previous margin outlooks, which is encouraging, the note said.

Meanwhile, the acquisition will likely further allow Autodesk to "make a valid case for why it should be well positioned to help define the next generation of industrial AI," the investment firm said.

RBC kept Autodesk's outperform rating and decreased the company's price target to $305 from $335.

Price: $231.62, Change: $-9.33, Percent Change: -3.87%

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