Digitization Drives Autodesk's Skyrocketing Potential, Analyst Predicts Bright Future

Shares of Autodesk Inc ADSK rose in early trading on Monday, after witnessing some unusual trading activity last week.

The company faces several large and unprecedented opportunities to grow its total addressable market (TAM), according to a William Blair analyst.

The Autodesk Analyst: Dylan Becker initiating coverage of Autodesk with an Outperform rating.

The Autodesk Thesis: Two of the largest global industries that the company targets, namely manufacturing and construction, are expected to grow significantly through 2030, “with a key emphasis on digitization,” Becker said in the initiation note.

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“The company features several core growth drivers, including noncompliant user conversion, generative design and simulation proliferation, construction industry digitization, and a growing emphasis on a direct sales effort, all of which should contribute to and layer into the company’s durable growth profile,” the analyst wrote.

“Management estimates its current total addressable market to be roughly $95 billion, implying a material runway to support double-digit constant-currency revenue growth for the next several years, in our view,” he added.

ADSK Price Action: Shares of Autodesk were up 1.53% to $197.64 at the time of publishing Monday.

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