Adobe Inc. (NASDAQ:ADBE) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Adobe Inc. has received an average recommendation of "Hold" from 28 research firms, with ratings that include 3 sell, 11 hold, 13 buy, and 1 strong buy.
• The average target price for Adobe shares is $433.41, with recent adjustments from Piper Sandler and Redburn Atlantic affecting their respective price targets significantly.
• In its most recent quarterly earnings report, Adobe beat consensus estimates with a EPS of $5.31 compared to the expected $5.18, and reported a revenue increase of 10.7% year-over-year.

Adobe Inc. (NASDAQ:ADBE - Get Free Report) has been assigned an average recommendation of "Hold" from the twenty-eight research firms that are covering the company, Marketbeat Ratings reports. Three analysts have rated the stock with a sell recommendation, eleven have given a hold recommendation, thirteen have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $433.4074.

ADBE has been the topic of a number of research analyst reports. Piper Sandler dropped their target price on shares of Adobe from $500.00 to $470.00 and set an "overweight" rating on the stock in a research note on Friday, September 12th. Redburn Atlantic downgraded shares of Adobe from a "hold" rating to a "strong sell" rating and dropped their target price for the stock from $420.00 to $280.00 in a research note on Wednesday, July 2nd. TD Cowen dropped their target price on shares of Adobe from $470.00 to $420.00 and set a "hold" rating on the stock in a research note on Friday, September 12th. Oppenheimer dropped their price objective on shares of Adobe from $500.00 to $460.00 and set an "outperform" rating on the stock in a research note on Tuesday, September 9th. Finally, JMP Securities reiterated a "market perform" rating on shares of Adobe in a research note on Friday, September 12th.

Adobe Stock Performance

Shares of NASDAQ:ADBE opened at $337.51 on Friday. The company has a market capitalization of $141.28 billion, a price-to-earnings ratio of 21.03, a PEG ratio of 1.56 and a beta of 1.49. Adobe has a 12 month low of $330.04 and a 12 month high of $557.90. The firm's 50-day moving average is $351.67 and its 200 day moving average is $370.78. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings results on Thursday, September 11th. The software company reported $5.31 EPS for the quarter, beating the consensus estimate of $5.18 by $0.13. The company had revenue of $5.99 billion for the quarter, compared to the consensus estimate of $5.91 billion. Adobe had a net margin of 30.01% and a return on equity of 57.54%. The firm's revenue was up 10.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $4.65 EPS. Adobe has set its FY 2025 guidance at 20.800-20.850 EPS. Q4 2025 guidance at 5.350-5.400 EPS. Research analysts predict that Adobe will post 16.65 EPS for the current year.

Hedge Funds Weigh In On Adobe

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. increased its position in shares of Adobe by 0.4% during the first quarter. Vanguard Group Inc. now owns 41,143,835 shares of the software company's stock worth $15,779,895,000 after purchasing an additional 171,547 shares in the last quarter. Bank of New York Mellon Corp increased its position in shares of Adobe by 14.4% during the first quarter. Bank of New York Mellon Corp now owns 6,530,611 shares of the software company's stock worth $2,504,685,000 after purchasing an additional 821,293 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Adobe by 2.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 5,468,383 shares of the software company's stock worth $2,097,289,000 after purchasing an additional 126,688 shares in the last quarter. Norges Bank acquired a new position in shares of Adobe during the second quarter worth $2,029,950,000. Finally, Amundi increased its position in shares of Adobe by 24.7% during the first quarter. Amundi now owns 4,848,521 shares of the software company's stock worth $1,782,642,000 after purchasing an additional 961,895 shares in the last quarter. 81.79% of the stock is currently owned by institutional investors.

Adobe Company Profile

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.

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