Autodesk (NASDAQ:ADSK) shares rose 2% on Friday after the architectural software company reported second-quarter results and guidance that were seen as positive by investment firm Baird.

“FY25 outlook is moving higher and by more than contribution from new transaction model (for which, updates to billings/revenue largely matched our expectation),” analyst Joe Vruwink wrote in an investor note. “We expected reiteration in underlying guidance to be positive for the stock, but with underlying revenue/margin improvement now being observed, we believe Autodesk likely sees additional near-term strength. On qualitative note, we thought this earnings call was one of most informative in recent memory; crisp execution and rebuilt track record (only guidance reiterations/raises over last six quarters) bring improved risk profile for investment case.”

Vruwink reiterated his Outperform rating on Autodesk and raised his price target to $305 from $295.

Additionally, Vruwink said he likes the setup for Autodesk into the end of the year, citing October’s Autodesk University event and its third-quarter earnings release, which is likely to include a reiteration of its $2.05B free cash flow target for fiscal 2026.

“[H]ere, the F2Q update is an encouraging one, and the company continues to cite the new transaction model as enabling future optimization and tailwinds to long-term revenue/margins,” Vruwink added.