Zacks Investment Research upgraded shares of Autodesk Inc. (ADSK) from NEUTRAL to OUTPERFORM on November 13, 2014, with a target price of $71.00.
Autodesk reported impressive second-quarter fiscal 2015 results. Both revenues of $637 million and earnings of $0.21 per share beat the Zacks Consensus Estimate. The company provided an upbeat guidance for the third quarter. We believe that increasing competition from the likes of Adobe pose a major concern for the company. Moreover, increasing investment in new products is expected to hurt margins in the near term. However, we believe that the company has significant growth opportunities in the AEC and manufacturing markets going forward. Further, the business transition to cloud-based offerings will boost its profitability in the long run. Additionally, its efforts to expand its mobile applications for iOS as well as Android platforms will drive growth going forward. Thus, we upgrade ADSK shares to Outperform and set a target price target of $71.00.
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