spiked on Friday after a positive analyst report.
Stock in the San Rafael, Calif.-based, computer-aided design company rose 5.8% in recent trading, adding $1.83 to $33.31, on higher-than-normal volume.
"Given the company's sustainable competitive advantages and opportunity for operating-margin leverage, we believe Autodesk remains well positioned for robust future revenue, operating profit, and free cash-flow growth," Credit Suisse analyst Philip Winslow wrote in a Thursday note.
Credit Suisse initiated coverage on the company with an outperform rating and a 12-month target price of $42.
It was a nice lift for the stock, which, due to a number of factors, has fallen 9% since the company's
latest partial earnings report on August 17. Autodesk provided only revenue numbers because of a voluntary, internal stock-options probe.
Earlier this week, Autodesk disclosed that the
Securities and Exchange Commission
asked for information related to its stock-options practices after the commission learned of Autodesk's internal probe.
The company also said it would fail to file its 10-Q by the Sept. 11 deadline, or Sept. 18 extended deadline, because of the ongoing internal investigation.
Investors also reacted negatively to news that Autodesk inked a $33 million deal to acquire
, a privately held company based in Grenoble, France that makes software for structural engineering analysis, design, and steel and concrete detailing.
For its latest partial results, the company reported $450 million in sales for its second quarter, growing from $436 million in the same period last year. Thomson First Call analysts polled had forecast an EPS of 35 cents on sales of $446.3 million.
The company's third-quarter guidance was in the range of what analysts anticipated. Autodesk expects revenue between $450 million and $460 million. Analysts expect an EPS of 38 cents on sales of $457 million.
In his note, Winslow listed four factors that could drive the company's future stock price, such as customers' migration from Autodesk's 2D AutoCAD products to its higher-priced 3D products; the company's expanding market share in the manufacturing vertical; better margin expansion than consensus expectations; and attractive valuation.
"Autodesk currently trades at a next-12-months P/E multiple of 19.7 times our above consensus estimates, which is a slight discount to the broader software industry's median of 21.9 times," he wrote. "Autodesk, however, is expected to grow earnings more than 24% over the next 12 months, as compared to the broader software average of approximately 13-15%."
"We believe that Autodesk has sustainable technology and competitive advantages in an attractive growth market, and we expect the stock to outperform our sector and the
," he wrote.
Credit Suisse has a banking relationship with Autodesk.