![]() There's a pressing need to evolve beyond that approach in the modern era, and the "Design-Make Convergence Loop" does just that by emphasizing adaptable production lines and continuous feedback throughout the manufacturing process to speed up iterations and cut costs. However, industries and processes are undergoing increasing digital transformation. Designers have traditionally relied on a technique known as the "Design-Feedback Loop," in which feedback from a user is fed back into the design process as a means of finding ways to make the item better. Investments merits Plenty of market opportunity aheadĬonstruction and Manufacturing are the two primary markets that I will concentrate on as they represent the bulk of ADSK's TAM, collectively $74 billion.īoth of these fields are experiencing a convergence of the design-make process. ADSK serves customers worldwide.Īs of FY21, ADSK has 40% revenue in Americas, 39% in EMEA, and 21% in Asia. Its features help customers innovate, save time and money, make better product decisions, increase sustainability, better communicate with stakeholders, and optimize their designs. Company overviewĪDSK is a software company specializing in products for the building and construction sectors, making construction and maintenance of buildings, roads, and factories more efficient. I expect it to make $7.1 billion in revenue and $2.3 billion in earnings in FY26, which, based on a 26x forward earnings multiple, would give it an equity value of $279.75 per share, which is 40% more than it is worth now. I believe management's long-term guidance is attainable as it is supported by several growth drivers and its ability to raise prices. It serves a critical function in its customers' workflow processes, thereby giving me confidence that ADSK is not a business that can be easily replaced. The key reason I favor ADSK is the critical nature of its product. ![]() ![]() I recommend going long Autodesk ( NASDAQ: ADSK) ($199.9 as of this writing). Pcess609/iStock via Getty Images Thesis highlight ![]()
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