Yahoo Finance Premium's investment Idea of the day: Autodesk

Yahoo Finance’s Alexis Christoforous and Jared Blikre discuss why Autodesk is Yahoo Finance Premium’s investment idea of the day.

Video Transcript

ALEXIS CHRISTOFOROUS: And we want to get to our Yahoo Finance Premium idea of the day, which is Autodesk. Haven't talked about that company in a while. What's going on there?

JARED BLIKRE: Yeah, I was using their AutoCAD products as early as the early 1990s, I think. But let's take a look at what Argus Research is saying on this because they have a bullish call. Oops, wrong button there. Sorry, guys. They have a bullish call on the stock, and I'll outline their reasoning and their price targets.

Here, they are on a six-month basis, and you can see it, like a lot of other software names, really trailed off this year, and especially within the last few weeks. Nevertheless, fundamental analysis looks past a lot of the technicals, which are short term sometimes. And here is what they are saying. They have a long term target of 360, and they are maintaining their buy after the most recent results.

So, just a couple words of commentary here. Autodesk recently announced the acquisition of Innovyze, and that's a water infrastructure simulation and modeling software company serving local water utilities, government agencies, et cetera, et cetera. They are lowering their fiscal year 22 non-GAAP EPS estimate. And they are also concluding by saying valuations for this innovative software technology company are high. So we believe that its highly differentiated software supports further growth. Alexis.

ALEXIS CHRISTOFOROUS: All right, thanks a lot, Jared.