Citigroup Adjusts Price Target on Autodesk to $269 From $252, Keeps Neutral Rating

Autodesk (ADSK) trades at 20x forward earnings, below its $312.75 analyst target. The company expects FY27 EPS of $12.40-$12.65 on revenue of $8.155B-$8.215B. ADSK grew revenue 18.4% YoY with a 91.5% beat probability for its Aug. 27 earnings report. Peers PTC and ANSYS show weaker growth and higher multiples.

Wall Street analysts issued multiple upgrades, downgrades, and initiations. Jefferies upgraded Verisk Analytics (VRSK) to Buy, $235 target. Morgan Stanley upgraded PayPay (PAYP) to Overweight, $23 target. KeyBanc downgraded Norwegian Cruise Line (NCLH) to Hold, $20 target. Guggenheim initiated Autodesk (ADSK) Buy, $245 target; BTIG started Live Nation (LYV) Buy, $215.

Autodesk (ADSK) amended its credit agreements to fund its planned acquisition of MaintainX. According to a regulatory filing, it raised its unsecured revolving credit facility to $2.0B from $1.5B with Citibank, enabling up to $1.0B for the deal, and added an unsecured 364-day delayed-draw term loan of $1.0B. The all-cash acquisition is valued at $3.6B.

Markets were mixed overseas as investors weighed Fed and ECB policy expectations. US 10-year yields fell to 4.523% after weekly jobless claims rose and May producer prices rose less than expected. The ECB raised its deposit rate 25 bp to 2.25% and cut 2026 GDP to 0.8%. Chip and AI stocks rose on Oracle’s higher-than-expected capex; Oracle fell over its $70B full-year capex forecast. Navan lifted guidance to $907M-$913M; Voyager gained on BTIG’s $55 target.

Autodesk CFO said the MaintainX acquisition will extend its AI push across the asset lifecycle, pairing MaintainX’s operational data from about 14,000 customers and 10 million assets with Autodesk’s design and construction data. He said MaintainX is not driven by core-demand concerns; Autodesk expects fiscal 2024-26 resilience. Autodesk plans $2 billion in new debt for the deal and targets unchanged fiscal 2027 and 2029 operating margin goals, with 2029 at 41% non-GAAP.

US stocks retreated as markets scaled back hopes for US-Iran peace. US MBA mortgage applications fell 2.5% (purchase -2.9%, refi -2.3%); the 30-year fixed rate dropped 8 bp to 6.57%. The Fed Beige Book was hawkish, citing slight-to-moderate growth and higher inflation; John Williams said no rate change is needed. Traders priced a 3% chance of a 25 bp hike.