Morgan Stanley Equal-Weight On Autodesk

Morgan Stanley has an Equal-Weight rating on shares of Autodesk ADSK after the company held its analyst day. In a note to clients, Morgan Stanley writes, "At their analyst day, ADSK management spoke to a broadening product portfolio, expanded suite strategy, sales investments, and new cloud services driving a 12-14% revenue CAGR and pushing margins to 30%+ by FY15, inline with the prior year's comments on the long-term model. ADSK also reiterated Q2 and FY12 guidance, noting stable sales linearity QTD, despite what seems to be a weaker macro environment. Longer-term, opportunities to grow in emerging mkts, further penetrate the base and grow the recurring subscription base look compelling. However, at 24x FY12 EPS ADSK appears fairly valued, and we would await a stabilizing macro and indications key drivers are kicking in before getting more constructive." Shares of ADSK gained 36 cents yesterday to close at $38.54, a gain of nearly 1%.