#1 - Autodesk (NASDAQ:ADSK)
Autodesk (NASDAQ: ADSK) - Investors have been rewarding Autodesk despite seeing their sales declining. In a nutshell, they believe in Autodesk’s business model which has seen the software creator change its business model from its focus on licensing to subscription services. As a result, the company has established a recurring revenue stream that is resulting in a price-to-sales ratio that has increased by 283% in the 12 months ending in April of 2018. And going forward, the company shows no signs of slowing down. Its product is unique to the industries it serves and it is benefiting from a growing customer base for their CAD/CAM software. Plus, by going to a subscription model, the company has lowered the cost of entry for getting customers up and running. And once these customers are on board, the perceived low subscription cost gives them a “sticky” relationship with their customers that provides the predictability that investors love.
Analysts are forecasting a 27% increase in revenue for 2019. The company’s stock is up over 121% since the beginning of 2015 and is currently trading around $149.
About Autodesk
Autodesk, Inc provides 3D design, engineering, and entertainment technology solutions worldwide. The company offers AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects; BuildingConnected, a SaaS preconstruction solution; AutoCAD, a software for professional design, drafting, detailing, and visualization; AutoCAD LT, a drafting and detailing software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool; and Industry Collections tools for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment collection industries.
Read More - Current Price
- $315.12
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 13 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $302.38 (4.0% Downside)
