BMO Capital Markets Lowers Adobe (NASDAQ:ADBE) Price Target to $230.00

Key Points

• BMO Capital Markets cut Adobe’s price target from $285 to $230 while keeping a market perform rating, implying about 14% upside from the current share price.
• Adobe’s stock was down 7.8% and traded near $201.64, close to its 52-week low, even as the company reported strong recent earnings and revenue growth.
• Despite a solid quarterly beat and a newly authorized $25 billion share repurchase plan, analysts remain cautious overall, with the consensus rating at Hold and several firms lowering their targets after the update.

Adobe (NASDAQ:ADBE - Get Free Report) had its target price decreased by BMO Capital Markets from $285.00 to $230.00 in a research note issued on Friday,Benzinga reports. The firm presently has a "market perform" rating on the software company's stock. BMO Capital Markets' target price suggests a potential upside of 14.06% from the company's current price.

A number of other equities research analysts have also weighed in on the stock. Summit Redstone set a $350.00 target price on shares of Adobe in a research note on Friday, April 17th. Citizens Jmp reissued a "market perform" rating on shares of Adobe in a research report on Friday. Citigroup reaffirmed a "market perform" rating on shares of Adobe in a research report on Friday. Evercore set a $225.00 price target on shares of Adobe in a research note on Friday. Finally, Stifel Nicolaus reiterated a "hold" rating and set a $200.00 price target (down from $350.00) on shares of Adobe in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eighteen have assigned a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, Adobe presently has a consensus rating of "Hold" and an average target price of $295.58.

Adobe Trading Down 7.8%

NASDAQ ADBE opened at $201.64 on Friday. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.47. The stock's 50-day simple moving average is $245.29 and its two-hundred day simple moving average is $279.13. Adobe has a twelve month low of $197.93 and a twelve month high of $405.00. The company has a market capitalization of $81.50 billion, a price-to-earnings ratio of 11.61, a PEG ratio of 0.91 and a beta of 1.42.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, beating the consensus estimate of $5.82 by $0.14. The firm had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.45 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The company's revenue was up 12.7% on a year-over-year basis. During the same period in the prior year, the company earned $5.06 EPS. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. Research analysts forecast that Adobe will post 19.14 EPS for the current fiscal year.

Adobe announced that its Board of Directors has initiated a share repurchase plan on Tuesday, April 21st that allows the company to buyback $25.00 billion in shares. This buyback authorization allows the software company to reacquire up to 24.9% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Adobe

In related news, CEO Shantanu Narayen sold 75,000 shares of Adobe stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $243.54, for a total transaction of $18,265,500.00. Following the sale, the chief executive officer owned 359,538 shares of the company's stock, valued at approximately $87,561,884.52. This trade represents a 17.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Daniel Durn sold 1,336 shares of Adobe stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $248.02, for a total transaction of $331,354.72. Following the sale, the chief financial officer owned 42,833 shares in the company, valued at approximately $10,623,440.66. The trade was a 3.02% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 77,091 shares of company stock valued at $18,782,773 over the last ninety days. 0.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Adobe

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Western Pacific Wealth Management LP purchased a new position in shares of Adobe in the fourth quarter valued at $26,000. Measured Wealth Private Client Group LLC bought a new position in Adobe during the third quarter valued at $26,000. KERR FINANCIAL PLANNING Corp purchased a new position in shares of Adobe in the 3rd quarter worth $27,000. Caitlin John LLC bought a new stake in shares of Adobe in the 3rd quarter worth about $28,000. Finally, Beacon Financial Strategies CORP purchased a new stake in shares of Adobe during the 4th quarter valued at about $28,000. 81.79% of the stock is owned by institutional investors.

More Adobe News

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe delivered a double beat in Q2, with revenue and EPS both topping Wall Street expectations, and it raised FY2026 and Q3 guidance. Adobe Reports Record Q2 Results
• Positive Sentiment: Management said AI-driven demand and stronger subscription spending are supporting growth, and Adobe reiterated a push into freemium AI products to expand users. ADBE Q2 Earnings Call Centers on Freemium AI Push, Raised Outlook
• Neutral Sentiment: Several analysts lowered price targets after the report, but most kept a neutral stance, suggesting the results were solid while near-term upside looks limited. These Analysts Slash Their Forecasts On Adobe Following Q2 Earnings
• Negative Sentiment: Investor concern centered on unchanged annual recurring revenue expectations, which raised doubts that Adobe’s AI push will quickly translate into durable growth. Adobe Beats Expectations and Raises Outlook, but Shares Fall on ARR Concerns
• Negative Sentiment: Adobe also announced that CFO Dan Durn is departing, adding leadership uncertainty on top of the ongoing CEO succession process. Adobe raises annual revenue forecast, CFO to exit

About Adobe

Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.

The company's core offerings are organized around digital media and digital experience.

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