As incredible as it may seem, 2021 is here and rolling. The holidays are over, and everybody has returned to Wall Street for what could be a very different year for investors, compared with the roller-coaster ride we took last year. Interest rates are expected to stay at generational lows, and with more stimulus headed out from Washington, D.C., that may help backstop struggling U.S. businesses and consumers.
In a new research report, Baird is out with its top picks for 2021 As the analysts unveil the highest conviction ideas, we continue to remind our readers that the markets are very extended and overbought now. While the analysts generally take the longer term view on a stock, the near term could be choppy.
We screened the top technology picks at Baird for 2021 and found five that look like outstanding ideas for growth stock investors with a somewhat higher risk tolerance level. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Autodesk
This has remained a favorite at Baird for years, and it still has solid upside to the firm’s price target. Autodesk Inc. (NASDAQ: ADSK) is a design software and services company providing a range of solutions for customers in architectural, engineering, construction, manufacturing, geospatial mapping and digital media markets.
The company offers AutoCAD, a professional design, drafting, detailing and visualization software. AutoCAD Civil 3D is a surveying, design, analysis and documentation solution for civil engineering, including land development, transportation and environmental projects. AutoCAD LT is drafting and detailing software. BIM 360 is construction management cloud-based software.
Autodesk also offers computer-aided manufacturing (CAM) software for computer numerical control machining, inspection and modeling for manufacturing. Its Fusion 360 is a 3D CAD, CAM and computer-aided engineering tool, and its Industry Collections software products are for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment industries.
The analysts said this in the report:
Autodesk is an idea we continue to like for 2021+ as the company executes on several cyclical/secular growth opportunities in AEC and manufacturing, reaccelerating revenue growth in the process. Autodesk customers are becoming more comfortable with the prospect of incremental investments following election/vaccine outcomes; within Autodesk’s own performance, this should manifest in steady bookings improvement throughout the year.
The Baird price target for the shares is $342, and the Wall Street consensus target is lower at $295.53. Autodesk stock closed trading on Tuesday at $301.70 a share.
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