Adobe (NASDAQ:ADBE) Lowered to Hold Rating by Wall Street Zen

Key Points

• Adobe's stock rating has been downgraded from "buy" to "hold" by Wall Street Zen, reflecting a more cautious outlook on the company.
• Analysts have lowered target prices for Adobe shares, with estimates ranging from $400 to $470, while one research analyst has given the stock a Strong Buy rating.
• Despite the downgrade, Adobe reported strong earnings with an EPS of $5.31, surpassing expectations, and revenue growth of 10.7% year-over-year.

Adobe (NASDAQ:ADBE - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

Other equities analysts have also issued reports about the stock. TD Cowen reduced their target price on shares of Adobe from $470.00 to $420.00 and set a "hold" rating on the stock in a research report on Friday, September 12th. Citigroup reduced their target price on shares of Adobe from $450.00 to $400.00 and set a "neutral" rating on the stock in a research report on Thursday, September 11th. Barclays upped their target price on shares of Adobe from $460.00 to $465.00 and gave the stock an "overweight" rating in a research report on Friday, September 12th. Oppenheimer reduced their target price on shares of Adobe from $500.00 to $460.00 and set an "outperform" rating on the stock in a research report on Tuesday, September 9th. Finally, BMO Capital Markets reduced their target price on shares of Adobe from $450.00 to $405.00 and set an "outperform" rating on the stock in a research report on Friday, September 12th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eleven have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $433.41.

Adobe Stock Performance

NASDAQ:ADBE opened at $333.26 on Friday. Adobe has a 1 year low of $327.50 and a 1 year high of $557.90. The firm has a 50 day moving average of $350.99 and a 200-day moving average of $368.86. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.53. The stock has a market capitalization of $139.50 billion, a P/E ratio of 20.76, a price-to-earnings-growth ratio of 1.48 and a beta of 1.49.

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

Institutional Investors Weigh In On Adobe

Several large investors have recently bought and sold shares of ADBE. Norges Bank bought a new stake in Adobe in the second quarter valued at approximately $2,029,950,000. Assenagon Asset Management S.A. increased its stake in Adobe by 308.1% in the second quarter. Assenagon Asset Management S.A. now owns 3,109,436 shares of the software company's stock valued at $1,202,979,000 after purchasing an additional 2,347,562 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in Adobe by 68.3% in the first quarter. Goldman Sachs Group Inc. now owns 4,575,792 shares of the software company's stock valued at $1,754,954,000 after purchasing an additional 1,856,544 shares in the last quarter. Nuveen LLC bought a new stake in Adobe in the first quarter valued at approximately $607,443,000. Finally, OVERSEA CHINESE BANKING Corp Ltd increased its stake in Adobe by 1,482.7% in the first quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 1,298,389 shares of the software company's stock valued at $498,000 after purchasing an additional 1,216,351 shares in the last quarter. Institutional investors own 81.79% of the company's stock.

About Adobe

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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