HSBC Upgrades Autodesk (ADSK) Stock to Buy

Autodesk, Inc. (NASDAQ:ADSK) is one of the Best Long Term Growth Stocks to Buy Now. On October 1, HSBC upgraded Autodesk, Inc. (NASDAQ:ADSK)’s stock to “Buy” from “Hold,” increasing the price objective to $388 from $343, noting the robust AI adoption as well as favorable capital expenditure trends. The firm highlighted that it switched its valuation methodology to target PEG (from target PE), considering the increasing signs that the company remains well-positioned to monetize AI and is likely to see margin expansion.

Autodesk, Inc. (ADSK): Among Recent Activist Investor Campaigns

The firm stated that Autodesk, Inc. (NASDAQ:ADSK)’s integration of AI throughout its core tools remains a key driver. Furthermore, the company’s large installed base as well as repository of user-generated designs offer a deep and wide data moat to train the AI offering, added HSBC. Beyond software, the macro trends remain supportive.  Overall, the firm opines that Autodesk, Inc. (NASDAQ:ADSK)’s stock will benefit from the AI exposure. For FY 2026, the company expects billings in the range of $7,355 million – $7,445 million, and revenues of between $7,025 million – $7,075 million.

While we acknowledge the potential of ADSK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADSK and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.