Analysts Slash Price Targets On Autodesk Post Q3 Results

Analysts mostly lowered their price targets on Autodesk Inc ADSK despite Q3 beat and robust outlook amid supply chain constraints, labor crisis, pandemic triggered deceleration in recovery coupled with FX headwinds that could pose a threat in FY23.

• KeyBanc analyst Jason Celino lowered the PT to $350 from $365 (37% upside) and maintained an Overweight. 
• Credit Suisse analyst Phil Winslow lowered the PT to $440 from $450 (72% upside) and reiterated an Outperform. 
• Morgan Stanley analyst Keith Weiss raised the PT to $344 from $324 (34% upside) and affirmed an Equal Weight. 
• His PT increases as he rolls forward his valuation basis year to FY24.
• Baird analyst Joe Vruwink lowered the PT to $307 from $380 and reiterated an Outperform.
• The analyst expects the shares to be in a penalty box given a second-consecutive quarter of negative billings revisions. 
• The company observed a decelerated rate of improvement. 
• It cited a handful of macro items impacting spending decisions, which manifested in slower new product subscription growth, lower-than-expected billings, and revised billings/FCF for FY22.
• Mizuho analyst Matthew Broome lowered the PT to $330 from $380 (29% upside) and maintained a Buy. 
• The company again lowered its full-year billings and free cash flow guidance, citing a decelerating economic recovery. 
• While "clearly disappointing," Autodesk's valuation remains attractive, and sentiment should improve considerably next year due to the anticipated renewal activity from a large cohort of multi-year subscribers.
• RBC Capital analyst Matthew Hedberg lowered the PT to $343 from $363 (34% upside) but reiterated an Outperform. 
• Hedberg remains optimistic about the company's continued solid renewals and an expanding customer base long term.
• Oppenheimer analyst Brian Schwartz lowered the PT to $315 from $350 (23% upside) and affirmed an Outperform. 
• He believes the U.S. infrastructure stimulus should benefit Autodesk over the next 12-24 months, which will likely drive accelerating cash flow growth and better sentiment for the business in FY23.
• Stifel analyst Adam Borg lowered the price target on Autodesk to $310 from $365 (21% upside) and kept a Buy rating.
• Rosenblatt analyst Blair Abernethy maintained Autodesk with a Buy and lowered the price target from $355 to $340 (33% upside).
• Piper Sandler analyst Weston Twigg maintained Autodesk with an Overweight and raised the price target from $338 to $340.
• Price Action: ADSK shares traded lower by 15.93% at $255.56 on the last check Wednesday.