BMO Capital Maintains Market Perform rating on Autodesk (ADSK), Lifts PT

On May 23, BMO Capital Markets adjusted its stance on Autodesk, Inc. (NASDAQ:ADSK)’s stock, raising its price objective to $333 from the prior target of $324, while maintaining a “Market Perform” rating.

The decision was backed by the company’s healthy start to FY 2026, exceeding expectations with its billings and offering favourable commentary related to its business model transition.

In Q1 2026, the company saw billings of $1,434 million, reflecting a YoY growth of 29%. This growth stemmed from the shift to annual billings for most multi-year contracts and a pivot to the new transaction model. During the quarter, the contribution from the new transaction model to billings amounted to $105 million.

Autodesk, Inc. (NASDAQ:ADSK) exhibited resilience in its demand conditions amidst a tough macroeconomic environment. BMO Capital’s analyst Daniel Jester mentioned that the company considered incremental conservatism in its billings guidance for the fiscal year.

Since February, the US dollar depreciated against major currencies, while the macroeconomic uncertainty has increased. Therefore, the increases in the company’s billings, revenue, and FCF dollar guidance ranges imply the foreign exchange movements. This is partly offset by additional caution in its underlying growth assumptions.

For FY 2026, Autodesk, Inc. (NASDAQ:ADSK) expects billings of between $7,160 million - $7,310 million, revenue of between $6,925 million - $6,995 million, and FCF of $2,100 million - $2,200 million.

Autodesk, Inc. (NASDAQ:ADSK) offers 3D design, engineering, and entertainment technology solutions.

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Disclosure: None.