Adobe (NASDAQ:ADBE) Given New $228.00 Price Target at Citigroup

Key Points

• Citigroup cut Adobe’s price target from $264 to $228 while keeping a neutral rating, reflecting a more cautious outlook on the stock. The new target still implies about 12.67% upside from the prior close.
• Adobe shares fell sharply, trading down 7.5% to $202.37 on heavy volume, even though the stock remains near its 52-week low range. Analysts’ consensus rating is still Hold, with a consensus price target of $285.73.
• Recent earnings were strong, with Adobe beating EPS and revenue estimates and posting 12.7% year-over-year revenue growth. The company also raised FY2026 guidance and said AI-first ARR has surpassed $500 million, but several brokerages still trimmed targets after the report.

Adobe (NASDAQ:ADBE - Get Free Report) had its price objective decreased by equities research analysts at Citigroup from $264.00 to $228.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a "neutral" rating on the software company's stock. Citigroup's price objective would suggest a potential upside of 12.67% from the stock's previous close.

ADBE has been the topic of a number of other research reports. Royal Bank Of Canada lowered their price target on Adobe from $350.00 to $285.00 and set an "outperform" rating on the stock in a report on Monday. Barclays reduced their price objective on Adobe from $275.00 to $250.00 and set an "equal weight" rating on the stock in a research report on Friday. DA Davidson reduced their price objective on Adobe from $300.00 to $250.00 and set a "buy" rating on the stock in a research report on Friday. Stifel Nicolaus reiterated a "hold" rating and set a $200.00 price objective (down from $350.00) on shares of Adobe in a research report on Friday. Finally, Wall Street Zen lowered Adobe from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, twenty have given a Hold rating and five have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $285.73.

Adobe Trading Down 7.5%

Shares of NASDAQ:ADBE traded down $16.44 during mid-day trading on Friday, reaching $202.37. The stock had a trading volume of 19,620,060 shares, compared to its average volume of 5,786,062. The firm has a market cap of $81.80 billion, a PE ratio of 11.78, a price-to-earnings-growth ratio of 0.91 and a beta of 1.42. The firm has a 50 day simple moving average of $245.29 and a two-hundred day simple moving average of $279.13. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.47. Adobe has a twelve month low of $196.90 and a twelve month high of $405.00.

Adobe (NASDAQ:ADBE - Get Free Report) last issued its quarterly earnings results on Thursday, June 11th. The software company reported $5.96 earnings per share for the quarter, topping the consensus estimate of $5.82 by $0.14. Adobe had a net margin of 29.48% and a return on equity of 64.48%. The company had revenue of $6.62 billion during the quarter, compared to analysts' expectations of $6.45 billion. During the same period last year, the business earned $5.06 EPS. The business's quarterly revenue was up 12.7% on a year-over-year basis. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, research analysts predict that Adobe will post 19.14 EPS for the current fiscal year.

Adobe declared that its Board of Directors has approved a stock buyback plan on Tuesday, April 21st that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows the software company to purchase up to 24.9% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In other news, CEO Shantanu Narayen sold 75,000 shares of the stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total value of $18,265,500.00. Following the sale, the chief executive officer directly owned 359,538 shares in the company, valued at approximately $87,561,884.52. This represents a 17.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Jillian Forusz sold 755 shares of the firm's stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $246.25, for a total value of $185,918.75. Following the completion of the sale, the chief accounting officer directly owned 3,521 shares of the company's stock, valued at $867,046.25. The trade was a 17.66% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 77,091 shares of company stock worth $18,782,773. Corporate insiders own 0.20% of the company's stock.

Institutional Investors Weigh In On Adobe

Institutional investors have recently added to or reduced their stakes in the business. Western Pacific Wealth Management LP acquired a new position in Adobe in the 4th quarter valued at $26,000. Measured Wealth Private Client Group LLC acquired a new position in Adobe in the 3rd quarter valued at $26,000. KERR FINANCIAL PLANNING Corp purchased a new stake in shares of Adobe during the 3rd quarter valued at $27,000. Caitlin John LLC purchased a new stake in shares of Adobe during the 3rd quarter valued at $28,000. Finally, Beacon Financial Strategies CORP purchased a new stake in shares of Adobe during the 4th quarter valued at $28,000. Hedge funds and other institutional investors own 81.79% of the company's stock.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe posted record Q2 revenue of $6.62 billion and EPS of $5.96, both ahead of Wall Street estimates, while revenue grew 12.7% year over year. Adobe Reports Record Q2 Results
• Positive Sentiment: The company raised full-year FY2026 revenue and earnings guidance, signaling confidence in demand and AI-driven adoption. Adobe raises annual revenue forecast, CFO to exit
• Positive Sentiment: Adobe said AI-first ARR surpassed $500 million, reinforcing that its AI products are gaining traction. Adobe Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
• Neutral Sentiment: Analysts still see upside in the stock, but several cut price targets after the report, reflecting a more cautious near-term view. Analysts Slash Adobe Stock (ADBE) Price Targets After Earnings
• Negative Sentiment: Investors are worried about leadership instability after CFO Dan Durn announced he is leaving to join Marvell, adding to uncertainty around Adobe’s CEO transition. Adobe CFO Dan Durn Departs for Marvell as Company Navigates CEO Succession
• Negative Sentiment: Management’s shift toward freemium AI growth and prioritizing user adoption over immediate monetization raised concerns that near-term ARR growth could slow. Why is Adobe stock sliding today despite earnings beat?
• Negative Sentiment: Multiple brokerages trimmed targets and some downgraded the shares after the earnings call, reinforcing skepticism that Adobe’s AI strategy will translate into faster growth soon. Adobe’s Loss, Marvell’s Win: Top Analyst Bangs the Drum for AI Chip Stock

About Adobe

Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.

The company's core offerings are organized around digital media and digital experience.

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