- There is a long-term secular increase in global demand for infrastructure and buildings, but the construction process has been hampered by inefficiency and low productivity improvements.
- Architecture, Engineering, and Construction software vendors like Bentley and Autodesk will grow by helping drive productivity through digitization of the design, construction, and asset management process.
- The AEC software industry has highly attractive risk-adjusted return characteristics, including recurring subscription revenues, recession resistance, an oligopolistic structure, powerful network effects, benefits of scale, and strong operating leverage.
- While long-term industry fundamentals are strong, the valuations are full. I am short-term neutral but long-term bullish.
For further details see:
Bentley And Autodesk: Improving Infrastructure Builders' Productivity And Generating Attractive Shareholder Returns