HSBC Upgrades Autodesk (ADSK) Stock to Buy

Autodesk, Inc. (NASDAQ:ADSK) is one of the Best Long Term Growth Stocks to Buy Now. On October 1, HSBC upgraded Autodesk, Inc. (NASDAQ:ADSK)’s stock to “Buy” from “Hold,” increasing the price objective to $388 from $343, noting the robust AI adoption as well as favorable capital expenditure trends. The firm highlighted that it switched its valuation methodology to target PEG (from target PE), considering the increasing signs that the company remains well-positioned to monetize AI and is likely to see margin expansion.

The firm stated that Autodesk, Inc. (NASDAQ:ADSK)’s integration of AI throughout its core tools remains a key driver. Furthermore, the company’s large installed base as well as repository of user-generated designs offer a deep and wide data moat to train the AI offering, added HSBC. Beyond software, the macro trends remain supportive.  Overall, the firm opines that Autodesk, Inc. (NASDAQ:ADSK)’s stock will benefit from the AI exposure. For FY 2026, the company expects billings in the range of $7,355 million – $7,445 million, and revenues of between $7,025 million – $7,075 million.

While we acknowledge the potential of ADSK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.