Adobe (NASDAQ:ADBE) Given Outperform Rating at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reaffirmed its Outperform rating on Adobe and set a $315 price target, implying 33.59% upside from the share price cited in the article.
• Analyst opinion is more cautious overall: MarketBeat reports a consensus Hold rating and an average price target of $282.52.
• Adobe beat quarterly estimates, reporting EPS of $6.13 versus $6.08 expected and revenue of $6.76 billion versus $6.69 billion; revenue grew 12.9% year over year.

Adobe (NASDAQ:ADBE - Get Free Report)'s stock had its "outperform" rating reissued by stock analysts at Royal Bank Of Canada in a report released on Wednesday, Benzinga reports. They currently have a $315.00 price target on the software company's stock. Royal Bank Of Canada's price objective would indicate a potential upside of 33.59% from the stock's current price.

Several other brokerages have also recently weighed in on ADBE. Jefferies Financial Group decreased their price target on Adobe from $285.00 to $275.00 and set a "hold" rating on the stock in a research report on Friday, September 11th. Robert W. Baird raised their price objective on shares of Adobe from $230.00 to $250.00 and gave the company a "neutral" rating in a research report on Friday, September 11th. Mizuho set a $260.00 price objective on shares of Adobe and gave the company a "neutral" rating in a research note on Tuesday, September 8th. Citizens Jmp reaffirmed a "market perform" rating on shares of Adobe in a report on Friday, September 11th. Finally, Barclays increased their target price on shares of Adobe from $250.00 to $295.00 and gave the stock an "equal weight" rating in a research note on Thursday, September 3rd. Nine research analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and eight have given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $282.52.

Adobe Stock Performance

Shares of Adobe stock traded down $0.90 during trading hours on Wednesday, reaching $235.80. The company had a trading volume of 341,795 shares, compared to its average volume of 5,553,179. Adobe has a one year low of $190.12 and a one year high of $362.71. The business has a fifty day simple moving average of $249.04 and a 200 day simple moving average of $249.02. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.77 and a quick ratio of 0.77. The firm has a market cap of $91.77 billion, a PE ratio of 13.19, a price-to-earnings-growth ratio of 0.83 and a beta of 1.37.

Adobe (NASDAQ:ADBE - Get Free Report) last released its quarterly earnings data on Thursday, September 10th. The software company reported $6.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.08 by $0.05. The company had revenue of $6.76 billion for the quarter, compared to analyst estimates of $6.69 billion. Adobe had a return on equity of 65.65% and a net margin of 28.05%. The firm's revenue for the quarter was up 12.9% compared to the same quarter last year. During the same period in the previous year, the company posted $5.31 EPS. Adobe has set its Q4 2026 guidance at 6.300-6.350 EPS and its FY 2026 guidance at 24.450-24.500 EPS. On average, analysts anticipate that Adobe will post 20.01 earnings per share for the current fiscal year.

Insider Buying and Selling at Adobe

In other Adobe news, CEO Shantanu Narayen sold 50,500 shares of the firm's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $249.57, for a total value of $12,603,285.00. Following the sale, the chief executive officer owned 238,724 shares of the company's stock, valued at $59,578,348.68. This trade represents a 17.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Adobe

Institutional investors and hedge funds have recently bought and sold shares of the stock. Investment Research & Advisory Group Inc. raised its position in shares of Adobe by 185.7% during the 3rd quarter. Investment Research & Advisory Group Inc. now owns 100 shares of the software company's stock valued at $25,000 after buying an additional 65 shares in the last quarter. Security National Bank of Sioux City Iowa IA purchased a new position in Adobe in the second quarter worth $27,000. Mowery & Schoenfeld Wealth Management LLC bought a new position in Adobe in the second quarter valued at $28,000. Latitude Advisors LLC bought a new position in Adobe in the third quarter valued at $29,000. Finally, North Point Portfolio Managers Corp OH bought a new position in Adobe in the third quarter valued at $30,000. 81.79% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Adobe

These are some of the ADBE headlines that stood out recently:

• Positive Sentiment: At Adobe MAX, the company expanded agentic AI across Creative Cloud and Firefly, including tools designed to automate creative workflows while giving users control. Adobe also opened apps such as Photoshop and Premiere to third-party AI assistants, potentially making its software more useful and retaining users within its ecosystem. Adobe Opens Photoshop and Premiere to Third-Party AI Agents
• Positive Sentiment: Disney named Adobe its AI innovation partner in a multi-year alliance involving custom AI models for creative and media operations. The deal offers a prominent enterprise use case for Adobe’s AI tools. Adobe and Disney Announce Multi-Year Strategic Alliance
• Negative Sentiment: A report said Adobe shares slipped as Google expanded Gemini AI across Adobe apps. The partnership may boost Adobe’s products, but investors could also be cautious about intensifying AI competition and whether new features will translate into meaningful growth. Adobe Stock Dips as Google Gemini AI Expands Into Adobe Apps

Adobe Company Profile

Adobe Inc. develops software and services for creating, managing and delivering digital content. Its products serve creative professionals, businesses, marketers and individual users around the world. Adobe's Digital Media offerings include Creative Cloud applications such as Photoshop, Illustrator, Premiere Pro and InDesign, along with Acrobat tools for creating, editing and signing PDF documents. The company also provides generative AI capabilities through Adobe Firefly and related features in its creative products.

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