UBS starts coverage of Autodesk, Procore with buy citing construction upside

Investing.com -- UBS started coverage of Autodesk Inc (NASDAQ:ADSK) and Procore Technologies Inc (NYSE:PCOR) with "buy" ratings, citing potential upside tied to a recovery in construction activity. Brokerage set price targets of $350 for Autodesk and $105 for Procore, representing a 20% and 29% upside respectively. 

UBS analysts expect Autodesk to grow 13% year-over-year in 2025, driven by its ability to integrate the entire design-to-build process, expand cross-selling opportunities, and leverage pricing power. Even with short-term disruptions from its new sales model, Autodesk’s dominant position in the software design market underpins its growth prospects.

Procore is similarly poised for growth, with UBS projecting an 11% revenue increase in 2025, buoyed by a rebound in construction volumes. The firm views Procore’s potential for 15% upside in an optimistic scenario, noting that current risks—such as competition and changes to its sales model—are already priced into the stock.

Autodesk is expected to gain from its ability to charge for additional software seats, while Procore’s earnings are linked to pricing based on increased construction volumes.

While competition is heating up, Autodesk’s Construction Cloud poses a direct challenge to Procore, UBS believes both companies are well-positioned to weather these pressures. Autodesk’s comprehensive design and build offerings give it a solid edge, while Procore remains strongly tied to the anticipated recovery in construction.