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ADSK Stock Sinks 8% Following Analyst Downgrade

Autodesk (NASDAQ:ADSK) was downgraded to “hold” by Deutsche Bank.
The price target for ADSK stock was also dropped to $225.
Expectations for mixed Q1 earnings are partially to blame.

Source: JHVEPhoto / Shutterstock.com

Autodes…

  • Autodesk (NASDAQ:ADSK) was downgraded to “hold” by Deutsche Bank.
  • The price target for ADSK stock was also dropped to $225.
  • Expectations for mixed Q1 earnings are partially to blame.

Source: JHVEPhoto / Shutterstock.com

Autodesk (NASDAQ:ADSK) stock is slipping on Monday after getting hit with a downgrade from Deutsche Bank analyst Bhavin Shah.

The bad news for ADSK stock starts with a downgrade from its previous “buy” rating to a new “hold” rating. For the record, analysts’ consensus rating for ADSK shares is “buy.” That’s based on 15 “buy” ratings, three “hold” ratings, as well as a single “sell” rating.

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As if that wasn’t bad enough, the downgrade also comes with a lowered price target of $225 per share. That still represents a 17.5% upside over its closing price on Friday. The prior price target for ADSK stock was $275. Currently, analysts’ consensus price target for ADSK shares is sitting at $270.22.

So what’s behind this shift in tone Deutsche Bank has for ADSK stock? It all has to do with discussions between platinum partners. Current expectations are for Autodesk to report a mixed earnings report for the first quarter of 2023, TheFly notes.

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To go along with that, a variety of factors are reportedly causing lower estimates for fiscal 2023. According to Shah, these are “changing demand, potentially lower adoption of multi-year contracts, currency and Russia.”

The trading volume for ADSK stock is below its daily average as of this writing. This has just under 1 million shares on the move Monday morning. The company’s daily average trading volume is about 1.9 million shares.

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ADSK stock is down 8.3% as of Monday morning.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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