Autodesk: No Economy-Related Slowdown

Goldman’s Sasa Zorovic yesterday assumed coverage of Audodesk (ADSK) from his colleague Chris Sailer and raised his rating on the stock to Buy from Neutral. He also raised his price target on the stock to $44 from $40.

“Resellers indicate strong sales momentum in Autodesk’s current [April] quarter and do not see an overall economy-related slowdown over the next several quarters,” Zorovic wrote in a research note. “We are increasingly comfortable the company may deliver top-line performance at the high end of guidance for this quarter, with the momentum carrying over into subsequent quarters.”

Zorovic says one driver for the company is the continuing move to 3-D design tools from 2-D, “a theme we find sustainable for a longer period of time.” He notes that the shares have slipped in recent weeks on economic concerns; the stock through Monday night was down 2% year-to-date.

The Goldman analyst sees 12% compounded growth for Autodesk over the next five years at the top line, with expanding margins allow 19% compounded growth in EPS. Concludes Zorovic: “Autodesk, in our opinion, provides investors with a compelling growth story.”

The company will hold an analyst day with investors on April 26; earnings will be reported the week of May 14.

Autodesk yesterday was up $1.17 at $40.01.