Analysts Identify Buying Opportunity in Autodesk Shares

Autodesk US0527691069

Following a sharp decline in its share price earlier in the week, Autodesk has received a new "Buy" rating from the investment bank Rothschild Redburn. Market experts express confidence in the software firm's long-term growth trajectory. The stock closed Friday's trading session at $276.02.

The recent sell-off, which saw Autodesk shares drop 6.1% last Thursday, is largely attributed to a broader sector rotation pulling capital away from growth-oriented technology stocks. However, the company's underlying business performance remains strong. For the third quarter of fiscal 2026, revenue increased by 18% to $1.85 billion, surpassing market expectations.

From a technical analysis perspective, the equity is currently trading below both its 50-day moving average of $297.17 and its 200-day moving average of $303.00. The initiation of coverage with a "Buy" recommendation suggests that institutional interest may be returning as the stock has cooled significantly from its 52-week high of $329.09.

Growth Drivers: Pricing Power and Innovation

Rothschild Redburn's analysis underscores Autodesk's dominant position within the architecture, engineering, and construction (AEC) software industry. The report highlights the company's formidable pricing power and high customer switching costs. Regular price increases in the mid-single-digit percentage range support an underlying revenue growth rate of approximately 10%.

Key growth catalysts include the global adoption of Building Information Modeling (BIM) mandates and the successful monetization of artificial intelligence-powered features. The "Make" segment, which focuses on construction-phase software, is singled out as a particular growth engine, projected to expand at nearly 20% annually—roughly twice the rate of the core business.

Upcoming Financial Milestones

Investors are now looking ahead to the next significant data points: the release of fourth-quarter and full-year fiscal 2026 results, anticipated for late February. Management has recently reaffirmed its full-year earnings per share guidance, projecting a range between $10.18 and $10.25.

Market participants will also be monitoring the contribution of the accelerated rollout of the Autodesk Construction Cloud to the stability of the company's recurring revenue streams.