ADSK - Autodesk: Strong Fundamentals But Fully Valued

2024-03-20 06:58:31 ET

Summary

• Autodesk's business is performing relatively well, in large part due to its AEC business, which is benefitting from fiscal stimulus.
• Cloud-based data, AI and end-to-end solutions which span industries are strengthening Autodesk's competitive position.
• Despite these positives, ADSK stock is expensive and vulnerable to a large pullback in the event of macro weakness.

Autodesk’s ( ADSK ) business continues to perform relatively well against a varied demand backdrop. It should be noted that the company is benefitting from enormous fiscal stimulus and automotive strength, both of which are unlikely to persist longer term. The last time I wrote about Autodesk , I suggested that 2024 could be difficult. The stock has performed in line with the market since then but my views on the risks facing the company remain unchanged....

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