Autodesk's Drive Into Manufacturing And Construction Industries Has Potential, Says Analyst

BMO Capital Markets analyst Daniel Jester initiated coverage on Autodesk Inc ADSK at Market Perform rating at a price target of $224.
The analyst thinks ADSK's business is currently more insulated from macro volatility on its business transformation initiatives.
Jester is bullish on the company's efforts to gain a share in the manufacturing industry and enter the construction sector in the design and project management stages.
The analyst thinks these initiatives can drive ADSK's cross-selling opportunities, boost connected workflows and data and analytics features, and grow the third-party ecosystem.
However, the analyst is concerned about headwinds such as shorter duration contracts and a moderate new subscription growth pace continuing into this year.
For Q1 FY24, which will release tomorrow, Jester estimates revenue growth of 8.1% y/y and EPS of $1.56, with revenues slightly lower than consensus but profits marginally higher than Street estimates.
For FY24, the analyst expects revenues of $5.4 billion (+8% y/y) and EPS of $7.33 (almost in line with the consensus).
Also Read: Digitization Drives Autodesk's Skyrocketing Potential, Analyst Predicts Bright Future
Price Action: ADSK shares are trading lower by 0.99% at $194.70 on the last check Wednesday.

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