AutoDesk - CAD giant (BUY - 240*)

Autodesk, Inc. operates as a design software and services company worldwide.
The company offers AutoCAD, a professional design, drafting, detailing, and visualization software; AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects; AutoCAD LT, a professional drafting and detailing software; BIM 360, a construction management cloud-based software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool; and Industry Collections software products for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment industries.

It also provides Inventor tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; and PlanGrid, a cloud-based field collaboration software, which provides general contractors, subcontractors, owners, and architects access to construction information in real-time.

In addition, the company offers Revit software for building information modeling; and Shotgun, a cloud-based software for review and production tracking in the media and entertainment industry. Autodesk, Inc. sells its products and services to customers directly, as well as through distributors and resellers. The company was founded in 1982 and is headquartered in San Rafael, California.

Share price, revenues, EBITDA
Autodesks's success and the continuing rise in its share price lies in the fact that it has a significant market share of the computer-aided-design sector (CAD).

We currently believe that there are no viable competitors against AutoDesk and therefore believe its dominant market position will remain.

A piechart illustrates each program that belongs to the Autodesk universe.

Coming at approximately at 60% marketshare AutoDesk and its universe of software enjoys a strong grip on the global market which is set to expand over the coming years as tech continues to transform economies and markets.

XLK versus other sectors of the SP500

XLK has enjoyed a strong performance the last years as we move further and into the digital age, something that is set to continue - benefiting the entire industry.

AutoDesk's software is set to be used for the foreseeable future, and its market penetration probably increased in emerging market economies. 

We would therefore give AutoDesk a buy with a target price of 240$ until Q2 of 2020.