Market News

Acquisition of The Wild to Boost Autodesk’s Extended Reality Capabilities

Software major Autodesk, Inc. (NASDAQ: ADSK) recently revealed that it has entered into a definitive agreement to acquire a cloud-connected, extended reality (XR) platform, The Wild. The financial terms of the deal have been kept under wraps.

Following the news, shares of the company rose 2.8% to close at $213.05 on Thursday.

With the adoption of metaverse expected to be mainstream in the near future, Autodesk’s move to acquire The Wild — to boost its virtual reality and augmented reality capabilities — seems strategic. This is because The Wild facilitates architecture, engineering and construction professionals to present, collaborate and review projects together in immersive and interactive experiences from anywhere and at any time. Further, The Wild’s virtual platform helps companies save costs and time.

Management Commentary

The CEO of Autodesk, Andrew Anagnost, said, “Our acquisition of The Wild reflects the rapid transformation taking place in the building industry, from the complexity of projects to the geographic diversity of teams who design, construct, and operate them. XR is a must-have business imperative for today and an important part of Autodesk’s Forge platform vision.”

Stock Rating

On March 24, J.P. Morgan analyst Sterling Auty reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $275 to $267, which implies upside potential of 25.3% from current levels.

Consensus among analysts is a Strong Buy based on 13 Buys, two Holds and one Sell. Autodesk’s average price target of $278.79 implies upside potential of 30.9% from current levels. Shares have declined 18.7% over the past year.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Autodesk’s performance this quarter.

According to the tool, the Autodesk website recorded a 3.14% monthly decline in global visits in February, compared to the same period last year. Further, the footfall on the company’s website has declined 11.15% year-to-date, compared to the previous year.

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