Autodesk's New Transaction Model May Pressurize Relationship With Resellers: Analyst Sees More Challenging Operating Environment
Portfolio Pulse from Nabaparna Bhattacharya
Mizuho analyst Matthew Broome downgraded Autodesk's price target from $220 to $200 while maintaining a Neutral rating, citing concerns over Autodesk's new transaction model that requires indirect customers to transact directly with the company. This change, which began in Australia and will roll out globally, could strain relationships with resellers. Despite solid Q3 results, Autodesk's FY25 revenue guidance of 9%+ growth is below expectations and its long-term target, reflecting a challenging operating environment. Autodesk's stock dropped 5.59% to $205.51.
November 22, 2023 | 6:34 pm
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NEGATIVE IMPACT
Autodesk's new transaction model and lower than expected FY25 revenue guidance may negatively impact the stock in the short term, as it has already led to a 5.59% drop in share price.
The direct transaction model could disrupt Autodesk's current reseller relationships, potentially affecting sales. The lower FY25 revenue guidance suggests slower growth, which may disappoint investors. The immediate stock price drop reflects market concerns.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100