Why Autodesk (ADSK) Could Reach $64

Story updated at 10 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Shares of Autodesk (ADSK) could reach as high as $64 according to UBS.

Autodesk gained 3.8% to $56.77 in morning trading.

The firm raised its price target for the software company to $64 from $57 while maintaining its "buy" rating for the company. Analysts Brent Thill and John Byun said the bumped price target is due to improved macro/end demand and very strong customer reception to subscription plans.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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Separately, TheStreet Ratings team rates AUTODESK INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate AUTODESK INC (ADSK) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, solid stock price performance, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 95.9% when compared to the same quarter one year prior, rising from $29.40 million to $57.60 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.8%. Since the same quarter one year prior, revenues slightly increased by 1.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 92.30% and other important driving factors, this stock has surged by 41.75% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ADSK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • AUTODESK INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AUTODESK INC reported lower earnings of $1.07 versus $1.22 in the prior year. This year, the market expects an improvement in earnings ($1.62 versus $1.07).
  • Despite currently having a low debt-to-equity ratio of 0.35, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that ADSK's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.49 is high and demonstrates strong liquidity.
  • You can view the full analysis from the report here: ADSK Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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