Adobe (NASDAQ:ADBE) Rating Lowered to Equal Weight at Morgan Stanley

Key Points

• Morgan Stanley downgraded Adobe's rating from "overweight" to "equal weight," setting a price target of $450.00, indicating a potential upside of 24.38% from the current stock price.
• Other analysts have also revised their price targets for Adobe, with Citigroup setting it at $400.00 and BMO at $405.00, contributing to a consensus price target of $433.41.
• Adobe reported $5.31 earnings per share for the last quarter, exceeding estimates, with a revenue increase of 10.7% year-over-year, and has set its FY 2025 guidance between $20.800-20.850 EPS.

Adobe (NASDAQ:ADBE - Get Free Report) was downgraded by Morgan Stanley from an "overweight" rating to an "equal weight" rating in a research note issued to investors on Wednesday, MarketBeat reports. They presently have a $450.00 price target on the software company's stock. Morgan Stanley's price target would indicate a potential upside of 24.38% from the stock's previous close.

Other equities research analysts also recently issued research reports about the company. Citigroup reduced their target price on Adobe from $450.00 to $400.00 and set a "neutral" rating for the company in a report on Thursday, September 11th. BMO Capital Markets cut their price target on Adobe from $450.00 to $405.00 and set an "outperform" rating for the company in a research note on Friday, September 12th. Rothschild & Co Redburn downgraded Adobe from a "neutral" rating to a "sell" rating and set a $280.00 price target for the company. in a research note on Wednesday, July 2nd. Robert W. Baird lifted their price target on Adobe from $410.00 to $425.00 and gave the stock a "neutral" rating in a research note on Monday, June 16th. Finally, JMP Securities reaffirmed a "market perform" rating on shares of Adobe in a research note on Friday, September 12th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $433.41.

Adobe Price Performance

Shares of NASDAQ ADBE opened at $361.78 on Wednesday. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.02 and a quick ratio of 0.99. The stock has a fifty day moving average price of $355.77 and a 200 day moving average price of $375.30. Adobe has a 1-year low of $330.04 and a 1-year high of $557.90. The company has a market cap of $153.47 billion, a PE ratio of 22.54, a P/E/G ratio of 1.63 and a beta of 1.48.

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

Institutional Trading of Adobe

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ADBE. Garde Capital Inc. acquired a new position in shares of Adobe in the 1st quarter valued at about $34,000. PFG Advisors lifted its position in Adobe by 20.8% during the 1st quarter. PFG Advisors now owns 4,964 shares of the software company's stock worth $1,904,000 after acquiring an additional 855 shares in the last quarter. Krane Funds Advisors LLC lifted its position in Adobe by 110.4% during the 1st quarter. Krane Funds Advisors LLC now owns 1,391 shares of the software company's stock worth $533,000 after acquiring an additional 730 shares in the last quarter. Financial Counselors Inc. lifted its position in Adobe by 9.2% during the 1st quarter. Financial Counselors Inc. now owns 62,851 shares of the software company's stock worth $24,105,000 after acquiring an additional 5,298 shares in the last quarter. Finally, Koss Olinger Consulting LLC acquired a new position in shares of Adobe in the 1st quarter valued at approximately $305,000. Hedge funds and other 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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