Why Are Autodesk Shares Falling Today?

Analysts slashed the price target on Autodesk Inc ADSK after its investor day, where it only reiterated its FY23 cash flow target.
Mizuho analyst Matthew Broome lowered the PT to $350 from $370, implying a 15.4% upside, and reiterated a Buy.
Broome reduced the target on updated comps but remains upbeat on its prospects following economic recovery.
Stifel analyst Adam Borg lowered the PT to $340 from $370, signifying a 12.1% upside, and maintained a Buy.
Autodesk's plans to shift its base business of product subscriptions from multi-year paid up-front to annual payment beginning in FY24 will create a free cash flow headwind, Borg notes. He holds concern whether it will be a long-term move.
He also thinks shares may "trade sideways" in the near term out of the event.
Morgan Stanley analyst Keith Weiss affirmed an Equal-Weight and lowered the PT from $334 to $324, indicating a 6.8% upside.
Rosenblatt analyst Blair Abernethy maintained a Buy with a $355 PT, implying a 17.1% upside. Abernethy noted a transition to annual billing for subscriptions would likely reduce free cash flow below its $2.4 billion 2023 target before recovering in FY25.
Abernethy remains positive on Autodesk's "growing end-markets and its expanding product offering to address its opportunity."
Price Action: ADSK shares traded lower by 4.84% at $288.56 on the last check Thursday.

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