Autodesk (ADSK) stock closed comfortably in the green on Nov. 26 after the software giant posted market-beating financials for its Q3 and raised its guidance for the full year.
On Wednesday, ADSK was seen trading briefly well past two of its major moving averages (50-day and 100-day) – signaling continued upward momentum ahead.
Despite the post-earnings rally, Autodesk stock is up only 2% versus the start of this year.
While ADSK shares reversed most of their post-earnings gains by market close on Wednesday, there were sufficient positives in the firm’s quarterly release to warrant investing at current levels.
For starters, the management raised its full-year revenue forecast to at least $7.15 billion versus its previous call for $7.075 billion tops.
This signals confidence in operational execution as digital transformation and artificial intelligence (AI) tailwinds continue to drive demand for the company’s offerings.
Autodesk’s strong earnings and upbeat guidance made Baird analysts reiterate their “Outperform” rating on its stock and raise their price target to $377 on Wednesday.
This indicates potential upside of a whopping 25% in Autodesk stock from current levels.
Beyond headline numbers, Baird pointed to a remarkable 100 basis points year-over-year increase in margin for its constructive view on the design software company.
Autodesk’s free cash flow tracking more than 10% above initial expectations indicates operational efficiency and balance sheet strength that further warrants owning its shares heading into 2026, it added.
According to the investment firm, Autodesk shares are rather inexpensive to own at a sales multiple of about 10x – especially given it stands to benefit from artificial intelligence tailwinds.
Investors should also note that Barchart’s options data also currently indicates upsides potential in ADSK to $337 by the end of the next year’s Q1.
Autodesk stock has had a muted 2025, but Wall Street analysts believe the coming year will likely be a different story altogether.
