Autodesk: Spicing Up Strong Fundamentals With The 3-D Printing Opportunity
- Autodesk delivered a strong quarter once again. The positive earnings revision cycle is likely to last in view of the improving macro environment in Japan and Europe.
- Autodesk’s open-source strategy in 3-D printing makes sense: if its platform enjoys wide adoption, it could give a significant boost to Autodesk’s sales of its core design and PLM solutions.
- Autodesk is a different and safer way to play the 3-D printing revolution in our view.
- The stock's 2015 P/E is expensive at first sight (42x) but it's worth noting that the operating margin and earnings are distorted by the business model transition.
- Assuming a normative operating margin of 30%, the stock's P/E would stand around 20x, which is not expensive for a software company with a huge opportunity in 3-D printing.