1. Autodesk, Inc. (NASDAQ:ADSK)
Number of Hedge Fund Holders: 74
Autodesk, Inc. (NASDAQ:ADSK) is a top software provider for designers, engineers, and builders. Its technology covers architecture, engineering, building, product design, and production. The most popular of its products is AutoCAD, a 3D software tool. That said, many users consider the company’s Fusion to be a superior tool, with its built-in features for 3D modeling, collaboration, simulation, and documentation.
On February 20, KeyBanc Capital Markets reiterated its confidence in Autodesk, Inc. (NASDAQ:ADSK), keeping an Overweight rating and a $330 price target. KeyBanc analyst Jason Celino presented insights following the firm’s conclusion of quarter-end evaluations, which predicted an “average” fiscal fourth-quarter performance from the software company. Celino expects Autodesk’s fiscal year 2025 sales prediction to increase by 12-13%, expanding on the company’s existing 11.5% revenue growth, with operating margin and free cash flow projections in line with previous forecasts.
Polen Focus Growth Strategy stated the following regarding Autodesk, Inc. (NASDAQ:ADSK) in its Q2 2024 investor letter:
“Autodesk, Inc. (NASDAQ:ADSK) and Accenture were also notable absolute detractors in the quarter. With Autodesk, most of the stock’s price weakness came in April. The company announced that it would delay the release of its earnings and 10-K filing as it launches an internal investigation regarding its practices on some non-GAAP financial metrics. Upon further analysis, we were encouraged to hear that they were taking this very seriously and being very comprehensive in their investigation. Ultimately, Accenture announced it was closing the investigation and that no re-statements would be required. As discussed in the following section, we chose to exit the position in favor of a more attractive investment.
While we acknowledge the potential of ADSK as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ADSK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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