BUZZ-Autodesk up after Mizuho upgrades to 'outperform'

Shares of design-software maker Autodesk ADSK.O rise 2.3% to $306.01 premarket

Mizuho upgrades its rating on the stock to "outperform" from "neutral"; also raises PT to $400 from $280

The brokerage shows confidence in the company's new transaction model, which rolled out in North America and Western Europe without significant disruptions

Mizuho believes the transaction model will enhance efficiency, lower sales process costs and unlock revenue synergies through improved cross-sell and upsell opportunities

"ADSK continues to see sustained momentum in construction with strong international growth, while in manufacturing, ADSK is outperforming peers, driven by Fusion's success and higher ASPs through improved extension attach rates" - Mizuho

The brokerage also anticipates Autodesk announcing headcount rationalization to further enhance margins

Twenty-one of 31 brokerages rate the stock "buy" and 10 "hold"; their median PT is $337.50 - data compiled by LSEG

The stock rose 21.4% in 2024