Updates on SNPS, GLBE, and ADSK

Wanted to share a few quick updates on 3 followed stocks which reported earnings last week. This will be fairly succinct, as there was nothing especially notable in any of the reports that would affect our long-term thesis, and price targets were moved very slightly or not at all.

Global-e (GLBE) reported a good quarter, with revenue up 54% and gross merchandise volume (GMV) rising a similar amount. The company raised its revenue guidance for the full year by about $6 million, and we continue to see gross margin improve (to 41.4% this quarter, vs. 39.1% in the year ago quarter). The firm continues to add new brands and expand relationships with existing brands, notably LMVH and Disney. Their strategic partnership with Shopify also continues to develop to plan. We will hold firm on the $37 price target.

Autodesk (ADSK) is a steady name, and we see more of the same in its Q1 report. Sales rose 8%, 12% after currency effects, backlog was up 12%, and subscription revenue accounted for essentially all of sales. Net revenue retention remained in the 110% ballpark. Autodesk is just a modest growing, very wide moat firm that still looks undervalued to me. The price target remains $286, putting ADSK on the Buy List at 30% below fair value.

Finally we come to Watch List stock Synopsys (SNPS), our semiconductor design software provider. Like Autodesk, Synopsys is a reliable, wide-moat firm that we expect to deliver modest 8-12% growth, along with strong cash flows and share buybacks. And... that's pretty much what we see in the firm's Q2 results. Sales rose 9% in a seasonally weak quarter, beating expectations. Synopsys raised its revenue and profit forecasts for '23, and executed an accelerated $300 million share repurchase just last week. While the market liked the report, sending the shares up 15%, I continue to think SNPS is a little rich at today's prices. The price target goes up a few bucks to $286, but that's still well below current share prices near $440.