Morningstar Rating

Stock Research and Analysis

by Andrew Lange

Bulls Say

High switching costs and network effects support Autodesk's wide moat. Engineers and designers are trained on Autodesk products in school, and employers don't want to incur the costs to retrain them on different software.
Cloud software delivery is a game-changing way to combat piracy--a potential boon for Autodesk. Currently, piracy in Asia Pacific is very high, and even in developed countries piracy rates are around 25%-30%.
The sales channel reorganization in 2012, which aligned the sales channel by industry rather than geography, is expected to create better salesforce efficiency. Read more 

Bears Say

Distributor consolidation poses a significant risk to Autodesk's sales channel.
Open-source CAD software, while not a threat at the moment, could erode the need for full-feature professional CAD software over the long term.
Operational issues in India and Brazil highlight some execution problems for Autodesk's emerging-markets business. Read more 

Management

We view Autodesk's stewardship of capital as standard. Carl Bass assumed the CEO position in May 2006; before that, he held other executive positions within the company, including COO. He joined Autodesk in 1993 when the company acquired Bass' software   Read more 

Profile

Autodesk is a leading provider of computer-aided design software. The company was founded on its flagship product, AutoCAD, in 1982. Since then, Autodesk has built a broad   Read more 

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A Wide-Moat Stock to Keep on Your Radar 
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