Analysts maintained their enthusiasm for software marker
Adobe
after it reported earnings this week. That isn’t stopping investors from running away.
Of the 12 analysts who updated their recommendations on the stock on Thursday in a FactSet survey, 10 give it a Buy rating and two give it a Hold. The average target price among them was $662. The shares were down 6% in premarket trading at $585.98.
In results Wednesday, Adobe provided disappointing revenue guidance, even though numbers for the most recent quarter were in line with expectations. Traders might have been expecting a bigger boost to revenue in the near term from the company’s artificial intelligence-powered products.
The shares have still added 90% over the past 12 months.
D.A. Davidson analysts increased their price target on the stock after earnings to $685 from $640. “We continue to view Adobe as a name positioned to post quality results despite ongoing macro headwinds given its strong new business momentum and sustainable margin profile,” said software analyst Gil Luria.
“Stay the course with Adobe,” wrote Oppenheimer analysts led by Brian Schwartz just before the earnings. “The stage looks set for Adobe to sustain an enduring and enviable business model that has durable growth with high profit margins over the next several years.” They maintained a $660 price target after Wednesday’s results.
Write to Brian Swint at [email protected]
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