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BofA: This software maker’s AI edge is ’hard to copy and hard to beat’

Bank of America reinstated coverage of Autodesk with a Buy rating and $300 price target, arguing the design software company’s entrenched 3D data and decade-long AI investment make its AI advantage “hard to copy.” BofA views AI as an upsell and revenue opportunity—citing 60% user acceptance for AutoConstrain—rather than a threat, and projects revenue growth of 13% and 10% in the next two years and free cash flow rising from $2.4bn (FY2026) to $2.8bn (FY2027). The $300 target is based on 21x calendar-2027 FCF and implies about 27% upside from recent levels. Near-term execution and a ~15% workforce reduction leave some risk to billings early in the year, but BofA expects recovery in H2 as enterprise renewals kick in.

Category

Microsoft

Sentiment

Bullish

Event

Institutional outlook

Reading time

1 min