Autodesk, Inc. (ADSK) is well positioned to benefit from a recovery in the economic environment, but we do not expect a significant impact until the second half of fiscal 2011 (ending Jan. 2011). Therefore, we remain Neutral on the stock, given our long-term confidence about Autodesk’s growth opportunities. Our target price of $28.00 is based on a P/E multiple of 25.5X our 2011 EPS estimate, a discount to the peer group.

Autodesk reported better-than-expected third quarter of 2010 results, but below year-ago levels. Moreover, management provided conservative fourth-quarter guidance.

With falling revenues, Autodesk has been generating weak cash flows. The company generated $121.2 million cash from operating activities fiscal year to date, a decline of $386.3 million from the comparable year-ago period.

On a positive note, with cash of $1.05 billion -- $4.52 per share -- and no debt, Autodesk has the necessary liquidity to continue as the leading developer of 3D

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Autodesk, Inc. (ADSK) announced the settlement of a lawsuit against Dassault Systèmes SolidWorks Corp. (SolidWorks) pending in the U.S. District Court for the Northern District of California. Autodesk had alleged that SolidWorks inappropriately used its trademarks AutoCAD and DWG in 2008.

However, SolidWorks made counterclaims against Autodesk. SolidWorks is a unit of Dassault Systèmes S.A, a 3D design software maker. To resolve the matter, Autodesk and SolidWorks have each agreed to dismiss all claims by entering into a confidential settlement agreement. Moreover, management did not give any details of the settlement, but said that all claims between the two rivals were dismissed.

Autodesk develops 2D and 3D model-based design and documentation products. The company’s principal products include AutoCAD and AutoCAD LT software (2D horizontal products), which accounted for 36% of total revenues in fiscal 2009.

AutoCAD is the company’s largest revenue-generating product and is a fully automated design and drafting platform utilized by

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For Immediate Release

Chicago, IL – November 19, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: PG&E Corporation (PCG), Edison International (EIX), Autodesk Inc. (ADSK), Adobe Systems Inc. (ADBE) and Apple Inc. (AAPL).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday’s Analyst Blog:

California May Ban High-Watt TVs

In California, an average residential customer’s 10% electrical consumption goes to television sets. However the regulatory apprehension is that with upgrade to larger television sets the consumption pattern for television sets will spike by as much as 8% annually. This is a worrisome

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International Business Machines (IBM) has agreed to sell off its sales and client support operations to Dassault Systèmes, a leading provider of 3D software and Product Lifecycle Management (PLM) solutions. The acquisition will fetch approximately $600 million.   Under the agreement, Dassault will acquire IBM’s PLM software application portfolio as well as customer contracts and related assets. The transaction is expected to be completed by the first half of 2010.   With this strategic partnership, IBM will significantly expand its 25-year relationship with Dassault. Moreover, the integration of IBM’s PLM sales operations into Dassault’s business will encourage growth, improve customer service and expand channel efficiency.   Through this integration, IBM plans to focus on its PLM infrastructure leveraging IBM's middleware offerings with Websphere (SOA), Information Management (DB2), Tivoli, Rational, Lotus Domino and Sametime.   IBM also plans to establish DS as an IBM Global Alliance Partner and expand ...

Dassault Systemes (DASTY) reported revenues below our estimates for the second quarter of 2008 but matched our earnings expectations.

It continues to forge strategic alliances and partnerships to stay ahead of competition. Dassault is a proven leader in its field and garners a high price-to-earnings multiple. At 22.7x our 2008 earnings estimate or 20.5x our new 2009 estimate, the company is priced around 2.0x to 2.2x its long-term growth rate.

We continue to rate shares of Dassault Systemes a Hold, and have tweaked our price target to $63.75 over the next six months, as we continue to believe the company should sell for 24.2x our new 2008 earnings estimate of $2.63 per share, which we have reduced after its second quarter results due to improvement at the gross margin level and after adjusting for our revenue & currency outlook.

We use US GAAP as opposed to Non-GAAP earnings, as

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