11:46 AM EDT, 09/30/2024 (MT Newswires) -- Autodesk ( ADSK ) was named by Morgan Stanley as its "top pick," highlighting the company's potential for significant earnings per share upside and robust margin expansion opportunities.

"Accelerating revenue and EPS growth, valuation below peers and a rich catalyst path makes [Autodesk ( ADSK )] our Top Pick," Morgan Stanley said in a note Monday.

Morgan Stanley said its pro forma analysis Autodesk ( ADSK ) could expand its GAAP operating margin to about 29% in fiscal 2028 from 21% to 22% in fiscal 2025.

The firm also said it sees an about 8% upside in non-GAAP EPS compared with Street estimates for the 2026 to 2028 period. "Pro forma EPS coupled with a multiple inline with scaled software and design peers points to 20%+ upside in shares and reinforces our overweight thesis," according to the note.

Morgan Stanley reiterated its overweight rating on Autodesk's ( ADSK ) stock with a $320 price target.

Price: 273.44, Change: +1.54, Percent Change: +0.56