Aristotle Value Equity Fund on Autodesk
Thesis
Autodesk is the industry standard in computer-aided design for architecture, engineering and construction and benefits from a highly recurring subscription model. Aristotle sees competitive advantages in the AutoCAD brand, leading AEC market share, a large installed base, significant switching costs, network effects and pricing power. Shares are viewed as attractively valued relative to normalized earnings because the market underappreciates Autodesk's potential for double-digit revenue growth and roughly 40% operating margins. Catalysts include broader BIM adoption, go-to-market modernization, tiered and consumption-based pricing, and continued market-share gains.
“We believe shares of Autodesk are attractively valued given our estimates of normalized earnings.”