Royal Bank Of Canada Cuts Adobe (NASDAQ:ADBE) Price Target to $430.00

Key Points

• Royal Bank of Canada has lowered its price target for Adobe from $480.00 to $430.00, while maintaining an "outperform" rating, suggesting a potential upside of 21.52% from the current stock price.
• Adobe's recent earnings report indicated an EPS of $5.06, surpassing expectations, with revenue of $5.87 billion, reflecting a 10.6% increase from the previous year.
• The consensus rating for Adobe among analysts is a "Moderate Buy" with a price target averaging $448.22.

Adobe (NASDAQ:ADBE - Get Free Report) had its price target decreased by analysts at Royal Bank Of Canada from $480.00 to $430.00 in a report released on Monday, Marketbeat.com reports. The firm presently has an "outperform" rating on the software company's stock. Royal Bank Of Canada's price objective indicates a potential upside of 23.08% from the company's previous close.

ADBE has been the subject of a number of other research reports. BMO Capital Markets reissued an "outperform" rating and issued a $450.00 target price on shares of Adobe in a research note on Friday, June 13th. Oppenheimer lowered their target price on Adobe from $530.00 to $500.00 and set an "outperform" rating for the company in a research note on Friday, June 13th. Redburn Atlantic lowered Adobe from a "hold" rating to a "strong sell" rating and lowered their target price for the company from $420.00 to $280.00 in a research note on Wednesday, July 2nd. Melius lowered Adobe from a "hold" rating to a "sell" rating and set a $310.00 target price for the company. in a research note on Monday, August 11th. Finally, Citigroup lowered their target price on Adobe from $465.00 to $450.00 and set a "neutral" rating for the company in a research note on Monday, June 16th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $435.63.

Adobe Price Performance

ADBE stock traded down $1.19 during mid-day trading on Monday, hitting $349.36. 14,118,114 shares of the stock were exchanged, compared to its average volume of 3,814,649. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.99 and a quick ratio of 0.99. The business has a fifty day moving average price of $357.92 and a 200 day moving average price of $380.45. Adobe has a 12 month low of $330.04 and a 12 month high of $557.90. The stock has a market capitalization of $148.20 billion, a price-to-earnings ratio of 20.94, a PEG ratio of 1.66 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 (EPS) for the quarter, topping the consensus estimate of $5.18 by $0.13. Adobe had a return on equity of 56.30% and a net margin of 30.01%.The firm had revenue of $5.99 billion during the quarter, compared to analyst estimates of $5.91 billion. During the same quarter in the previous year, the company posted $4.65 earnings per share. The company's revenue was up 10.7% compared to the same quarter last year. Adobe has set its FY 2025 guidance at 20.800-20.850 EPS. Q4 2025 guidance at 5.350-5.400 EPS. On average, sell-side analysts anticipate that Adobe will post 16.65 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Copia Wealth Management purchased a new position in shares of Adobe during the 4th quarter worth approximately $28,000. SWAN Capital LLC purchased a new stake in shares of Adobe in the 4th quarter worth approximately $28,000. 1248 Management LLC purchased a new stake in shares of Adobe in the 1st quarter worth approximately $25,000. Barnes Dennig Private Wealth Management LLC purchased a new stake in shares of Adobe in the 1st quarter worth approximately $26,000. Finally, LSV Asset Management grew its stake in shares of Adobe by 350.0% in the 2nd quarter. LSV Asset Management now owns 72 shares of the software company's stock worth $28,000 after buying an additional 56 shares during the last quarter. Hedge funds and other 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.