Adobe (NASDAQ:ADBE) Rating Lowered to "Hold" at Mizuho

Key Points

• Mizuho downgraded Adobe from a "strong-buy" to a "hold" rating, indicating a shift in analyst sentiment regarding the company's stock performance.
• Despite the downgrade, several brokerages continue to rate Adobe positively; the stock has a consensus rating of "Hold" along with an average price target of $433.41.
• Adobe recently reported earnings that exceeded expectations, with a 10.7% year-over-year revenue growth and an earnings per share of $5.31 for the quarter.

Adobe (NASDAQ:ADBE - Get Free Report) was downgraded by research analysts at Mizuho from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Wednesday,Zacks.com reports.

A number of other brokerages have also commented on ADBE. Morgan Stanley lowered Adobe from an "overweight" rating to an "equal weight" rating and cut their price target for the stock from $520.00 to $450.00 in a report on Wednesday. Stifel Nicolaus cut their price target on Adobe from $525.00 to $480.00 and set a "buy" rating for the company in a report on Friday, June 13th. Bank of America upped their price target on Adobe from $424.00 to $475.00 and gave the stock a "buy" rating in a report on Friday, June 13th. Phillip Securities upgraded Adobe from a "moderate sell" rating to a "strong-buy" rating in a report on Monday, June 16th. Finally, Robert W. Baird boosted their price objective on Adobe from $410.00 to $425.00 and gave the company a "neutral" rating in a research report on Monday, June 16th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $433.41.

Adobe Trading Up 0.3%

Shares of NASDAQ ADBE opened at $354.16 on Wednesday. The stock has a market cap of $150.23 billion, a price-to-earnings ratio of 22.07, a PEG ratio of 1.58 and a beta of 1.48. The business has a 50 day simple moving average of $355.36 and a 200 day simple moving average of $374.59. Adobe has a 52 week low of $330.04 and a 52 week high of $557.90. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.99 and a current ratio of 1.02.

Adobe (NASDAQ:ADBE - Get Free Report) last announced 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 business had revenue of $5.99 billion during the quarter, compared to analysts' expectations of $5.91 billion. Adobe had a return on equity of 57.54% and a net margin of 30.01%.The firm's quarterly revenue was up 10.7% compared to the same quarter last year. During the same quarter in the previous year, the business 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. On average, research analysts predict that Adobe will post 16.65 earnings per share for the current fiscal year.

Institutional Trading of Adobe

Several large investors have recently made changes to their positions in ADBE. Norges Bank acquired a new position in shares of Adobe during the second quarter valued at $2,029,950,000. GAMMA Investing LLC lifted its stake in shares of Adobe by 46,806.6% during the first quarter. GAMMA Investing LLC now owns 2,990,767 shares of the software company's stock valued at $1,147,049,000 after acquiring an additional 2,984,391 shares during the period. Assenagon Asset Management S.A. lifted 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 buying an additional 2,347,562 shares during the period. Goldman Sachs Group Inc. lifted 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 buying an additional 1,856,544 shares during the period. Finally, Nuveen LLC acquired a new position in Adobe in the first quarter valued at about $607,443,000. Institutional investors own 81.79% of the company's stock.

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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