Autodesk Inc (NASDAQ: ADSK)The world's largest supplier of software for industrial and civil construction, engineering, media and entertainment market. The company has developed a wide range of replicated software products for architects, engineers, constructors.
The company's product portfolio includes: AutoCAD, AutoCAD LT, Industry Collections, 3ds Max, Maya, Revit, Inventor, AutoCAD Civil 3D, CAM Solutions, Fusion 360, BIM 360 and Shotgun.
- In 2018, the Company began cooperation with Amazon for AI visualization products;
- The market capitalization for January 2019 is about 33 billion US dollars;
- ADSK surpassed the software industry, which grew by 25.2% over the past year;
- Nasdaq analysts expect the company to increase profits by an average of 38% per year in the next 5 years.
Autodesk systematically improves earnings per share over the course of the year:
in January 2018, the figure was: $ -0.79;
in April 2018: $ -0.38;
in July 2018: $ -0.18;
in October 2018: $ - 0.11.
In this case, according to forecasts, in March 2019 the company should show a positive result for the first time since May 2015. Quarterly revenue for 2018 increased by 20% and amounted to about 661 million US dollars according to a report at the end of October 2018 against 554 million US dollars as of January 2018.
On our opinion, there is also a positive trend in Autodesk shares should be provided by the completion of the transaction for the purchase of Building connected - the largest digital network in the construction industry, numbering 700,000 specialists
The company looks interesting on the daily and weekly charts. The daily trend was in a flat after rapid growth from January to August 2018. The correction occurred just in the period of the “collapse” of American indices (November - December 2018). At this time, steadily growing trend changed to the flat . At the end of December 2018, the uptrend was resumed.
At the same time, the weekly trend practically did not stop and even the events of the end of 2018 could not greatly affect the stability of the technological giant. On the weekly chart, the pattern of "double bottom" is clearly visible. According to the classical theory of technical analysis, the refinement of this pattern sends the price to the entire height of the formation from the breakout point. The graph shows projection points of a steadily growing channel. The upper point of the trend channel almost 1 in 1 coincides with the goal of testing the “double bottom” pattern. The growth target in this case is around $ 175 per share:
However, we must understand that the price may not rush to the mark of $ 175 without significant corrections after 5 weeks of rampant growth. Analyzing the daily chart, one can see strong mirror levels at the levels of $ 140 and $ 145, from which the price can push off, denoting the strongest uptrend.
All distribution deltas confirm the beginning of a new upward movement. Negative Stochastic is a bit late.
Total:To medium-term investors, we recommend buying half of the estimated position at current prices and averaging over $ 140- $ 145 in case of rollback. Stop under a strong level of $ 140 (it is advisable to wait for the price to fix below this level for at least 3 days).