Autodesk upgraded to Buy at Argus on improving profitability. As reported earlier, Argus analyst Joseph Bonner upgraded Autodesk to Buy from Hold with a price target of $160, saying the company has turned a corner in its business transition after 3 consecutive quarters of profitability and raised FY19 guidance. The analyst further notes that the company's total annualized recurring revenue, which he sees as a "key performance indicator", continued to accelerate in FY19, while its PlanGrid acquisition "provides an opportunity for Autodesk to further differentiate its construction planning and management software offerings". Bonner warns that construction and manufacturing are "volatile sectors" and that exposure to those industries raises risks for the company, but also believes that the 22% pullback in Autodesk stock price from the August highs provides a favorable entry point for investors.
