The outbreak of the pandemic led enterprises to realize the importance of cloud computing in an unprecedented manner. Organizations rapidly transitioned to the cloud to adopt remote work for continual flow in their businesses, which might otherwise have been slowed down by the pandemic-induced restrictions.
That led to a spur in demand for several companies that offer cloud-based applications and tools, as enterprises are now more vigilant of the cloud’s benefits.
Autodesk (NASDAQ: ADSK) is a global software company that designs software and services used in the architecture, engineering and construction, manufacturing, digital media, and entertainment industries. Amid the increasing adoption of cloud and the company’s transition from a traditional license revenue model to a cloud-based subscription model, it has lately emerged as an industry leader.
Recently, following the company’s call with investors, Rosenblatt Securities analyst Blair Abernethy reiterated a Buy rating on Autodesk with a price target of $320 (9.6% upside potential).
Abernethy noted that during the call, Autodesk unveiled new details about its SaaS-based Tandem digital twin platform, which has been commercially available, post its successful beta, since February. A digital twin is a digital representation of a physical item.
“Autodesk Tandem is a cloud-based digital twin technology platform that aims to turn that stat on its head,” said Bob Bray, senior director and general manager, Autodesk Tandem, in a recent press release. “It enables projects to start digital, stay digital, and deliver digital, transforming rich data into business intelligence,” Bray added.
According to the analyst, though the development of digital twins is in an early stage in the architecture, engineering, and construction (AEC) industry, there are some compelling reasons to adopt this technology. (See Autodesk stock chart on TipRanks)
Abernethy believes that through this platform, Autodesk has an opportunity to help owners manage their projects digitally in an efficient manner. Furthermore, the product will support digital transformation initiatives, possibly bringing significant returns on capital to owners.
Abernethy added that Autodesk has near-term opportunities for Tandem in healthcare, data center, water utilities, and campus facilities as well.
Overall, the analyst commented, “We are positive on the long-term opportunity for Autodesk to leverage its strong position in the AEC industry to provide a new level of abstraction, data capture opportunity and value for its customers through Digital Twins.”
On TipRanks, Autodesk is a Strong Buy based on 8 Buy and 2 Hold ratings. The average Autodesk price target of $337 implies upside potential of 15.4% from the current levels. Autodesk shares have increased around 26% over the past year.
According to the new TipRanks’ Risk Factors tool, the Autodesk stock is at risk mainly from two factors: Finance and Corporate risk and Tech and Innovation risk, which contribute 28% and 26%, respectively, to the total risk for the stock. Within the Finance and Corporate risk category, ADSK has 11 risks, details of which can be found on the TipRanks website.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your analysis before making any investment.
