With summer just around the corner, most of the major Wall Street firms that we cover are making some changes and additions to their firms top stock ideas for institutional and high net worth investors. At one of the top regional brokerage firms, Baird, they are making some additions to the firm’s Focus Idea list that look like they make very good sense for investors searching for new ideas.
The Baird Focus Idea list is a selection of the top stock ideas at the firm organized by growth and value, as well as by sector. The firm added 16 new stocks to the list. We screened the new additions for those with the best upside to the Baird price target.
This company is an outstanding tech stock that now makes the list. Autodesk Inc. (NASDAQ: ADSK) operates as a design software and services company worldwide. Its Platform Solutions and Emerging Business segment offers AutoCAD software, a computer-aided design application for professional design, drafting, detailing and visualization, as well as AutoCAD LT, a professional drafting and detailing software. The stock has sold off from highs printed in February and may be offering a stellar entry point.
The company is beginning to benefit from the increased adoption of cloud-based services. The company’s software packages like Fusion 360, BIM 360 and PLM 360 are also gaining traction. However, in the near term, profitability may remain under pressure due to investments in cloud-based infrastructure and marketing initiatives. The company reported so-so earnings, and many feel any increase in construction, especially commercial, can help.
The Baird price target for the stock is $70. The Thomson/First Call consensus target is right in line at $70.72. Shares closed Wednesday at $54.94.