Autodesk (ADSK) faces limited risk from artificial intelligence and is positioned for repeated upward revisions, Morgan Stanley said in a Monday note.

Morgan Stanley analysts said their talks with channel partners revealed a low threat to Autodesk from AI disruption, with limited competition from AI rivals. The company's advantages of vast domain data, embedded workflows, and design ecosystem integration create a stable competitive moat, amplified by a tight architectural labor market, the analysts said.

Talks with partners also confirm expected stable Q4 results with solid subscription renewals and positive upside for new business growth from the previous quarter, the analysts said. The company's preliminary results had its revenue, non-GAAP EPS, and free cash flow all above the high end of its guidance, according to the note.

Autodesk currently trades at a 7%-to-13% discount compared to its vertical software peers, and it should be able to bridge the gap as it rebuilds investor trust through consistent performance, the analysts said.

Autodesk is scheduled to report Q4 earnings on Thursday.

Morgan Stanley maintained the company's stock rating at overweight and adjusted the price target to $350 from $385.

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