Autodesk (ADSK) boosted guidance for free cash flow in the fiscal year, bolstering confidence in the stock, RBC Capital Markets said Friday in a report.

RBC cited "progression of the transaction model" and continued focus on investment to drive growth and margins after Autodesk reported fiscal Q1 results that topped Wall Street estimates. The company increased the midpoint on free cash flow guidance to $2.15 billion from $2.125 billion, according to the report.

"Management noted that customers had flagged an elevated level of uncertainty," RBC said. Still, the company "is not seeing any impact in underlying business trends," citing the higher trend in the construction backlog and increases in monthly active users and bidding activity, the report said.

RBC maintained an outperform rating on Autodesk with a price target of $345, citing potential for long-term margin expansion and strong free cash flow generation.

Price: 295.45, Change: +0.45, Percent Change: +0.15