Morgan Stanley maintains Overweight rating on Autodesk, raises PT to $385.

Morgan Stanley maintains Overweight rating on Autodesk, raises PT to $385.

Morgan Stanley has maintained its Overweight rating on Autodesk Inc. (ADSK) while raising its price target to $385, reflecting the firm's positive outlook on the company's financial prospects and growth potential. The analyst's decision comes following Autodesk's strong second-quarter (Q2) fiscal 2026 results, which exceeded market expectations.

Autodesk reported a 17% year-over-year (YoY) increase in revenue, reaching $1.76 billion, and billings surged by 36% to $1.68 billion. The company's operating margin improved by 2 percentage points to 25%, while non-GAAP operating margin rose by 1 percentage point to 39%. Cash flow from operating activities more than doubled to $460 million, and free cash flow rose by 122% to $451 million [1].

For the third quarter of fiscal 2026, Autodesk expects revenue between $1.80 billion and $1.81 billion, with non-GAAP earnings per share (EPS) ranging from $2.48 to $2.51. For the full fiscal year 2026, the company projects revenue of $7.03-$7.08 billion, representing approximately 15% growth [1].

Morgan Stanley analyst Keith Weiss reiterated the Overweight rating and raised the price target from $370 to $385, reflecting optimism about Autodesk's strategic initiatives and the potential for free cash flow growth. The analyst cited the company's strong Q2 results and solid outlook for continued momentum as it navigates the transition to its new transaction model [2].

Autodesk's shares are trading at a discount compared to peers, presenting a favorable risk/reward scenario for investors. The company's robust Q2 results and solid outlook suggest continued growth and execution on strategic initiatives.

References:
[1] https://za.investing.com/news/company-news/autodesk-q2-fy26-slides-revenue-growth-accelerates-to-17-billings-surge-36-93CH-3859721
[2] https://www.marketbeat.com/ratings/by-issuer/morgan-stanley-stock-recommendations/