Barclays Forecasts Strong Price Appreciation for Adobe (NASDAQ:ADBE) Stock

Key Points

• Barclays has increased its price target for Adobe (NASDAQ: ADBE) from $460 to $465, indicating a potential upside of 32.65% from the stock's previous close.
• The consensus among analysts shows a mix of ratings with two Strong Buy, fifteen Buy, eight Hold, and three Sell ratings, resulting in an average target price of $442.30.
• In its latest earnings report, Adobe reported $5.06 EPS, exceeding estimates, with a year-over-year revenue increase of 10.6% to $5.87 billion.

Adobe (NASDAQ:ADBE - Get Free Report) had its price target increased by stock analysts at Barclays from $460.00 to $465.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has an "overweight" rating on the software company's stock. Barclays's price target would indicate a potential upside of 32.65% from the stock's previous close.

ADBE has been the subject of a number of other research reports. Redburn Partners set a $280.00 price objective on shares of Adobe in a research report on Monday, September 1st. Wells Fargo & Company reaffirmed an "overweight" rating and set a $470.00 price objective (up previously from $430.00) on shares of Adobe in a research report on Friday, June 13th. Redburn Atlantic cut shares of Adobe from a "hold" rating to a "strong sell" rating and lowered their price objective for the stock from $420.00 to $280.00 in a research report on Wednesday, July 2nd. UBS Group lowered their price objective on shares of Adobe from $430.00 to $400.00 and set a "neutral" rating for the company in a research report on Friday, August 29th. Finally, Bank of America raised their price target on shares of Adobe from $424.00 to $475.00 and gave the company a "buy" rating in a research report on Friday, June 13th. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eight have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $442.30.

Adobe Trading Up 0.1%

ADBE opened at $350.55 on Friday. The firm has a market cap of $148.70 billion, a price-to-earnings ratio of 22.43, a PEG ratio of 1.66 and a beta of 1.48. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 0.54. Adobe has a 12 month low of $330.04 and a 12 month high of $587.75. The stock has a fifty day moving average price of $357.92 and a 200-day moving average price of $380.45.

Adobe (NASDAQ:ADBE - Get Free Report) last released its quarterly earnings results on Thursday, June 12th. The software company reported $5.06 earnings per share for the quarter, topping the consensus estimate of $4.97 by $0.09. Adobe had a net margin of 30.39% and a return on equity of 53.68%. The firm had revenue of $5.87 billion during the quarter, compared to the consensus estimate of $5.80 billion. During the same quarter in the prior year, the firm earned $4.48 EPS. The company's revenue for the quarter was up 10.6% on a year-over-year basis. As a group, equities research analysts anticipate that Adobe will post 16.65 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in ADBE. Siemens Fonds Invest GmbH boosted its holdings in Adobe by 252.9% during the fourth quarter. Siemens Fonds Invest GmbH now owns 55,658 shares of the software company's stock worth $25,000 after buying an additional 39,888 shares in the last quarter. 1248 Management LLC purchased a new stake in Adobe during the first quarter worth about $25,000. Barnes Dennig Private Wealth Management LLC purchased a new stake in shares of Adobe in the first quarter valued at about $26,000. SWAN Capital LLC purchased a new stake in shares of Adobe in the fourth quarter valued at about $28,000. Finally, Copia Wealth Management purchased a new stake in shares of Adobe in the fourth quarter valued at about $28,000. 81.79% of the stock is currently owned by institutional investors and hedge funds.

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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