CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target to $379 from $339, based on 27x our FY 28 EPS estimate, with our multiple representing a discount to three- and five-year historical averages of 28-31x, reflecting elevated AI competitive risks despite ADSK's strong defensive positioning. We maintain our FY 27 EPS estimate of $12.55, incorporating the Q1 beat but adjusting FY 28 downward to $14.05 from $14.40 for expected margin compression from MaintainX dilution. The company is executing well across all dimensions, with Q1 revenue up 18% Y/Y driven by AECO strength (+20%) and AutoCAD growth (+15%), while billings growth of 18% Y/Y signals solid forward momentum. We view near-term margin pressure from the acquisition as short-term pain for long-term gain, with MaintainX growing 50%+ and closing the design-make-operate loop with operational data that enhances AI capabilities. Cash generation remains robust, with Q1 operating cash flow of $893M (+58% Y/Y) and free cash flow of $876M (+58% Y/Y) demonstrating the underlying business health.