Adobe (ADBE) Receives Strong Buy Rating From Stifel Nicolaus Analyst

By Don Francis, Editor
September 16, 2023 12:52 PM UTC
Adobe (ADBE) Receives Strong Buy Rating From Stifel Nicolaus Analyst

Stifel Nicolaus's Parker Lane raised their price target on Adobe (NASDAQ: ADBE) by 9.1% from $550 to $600 on 2023/09/15. The analyst maintained their Strong Buy rating on the stock.

Adobe, the diversified software company, recently reported its Q3 2023 results, which were "largely aligned with expectations," according to Lane. During the earnings call, management highlighted the company's advancements in generative AI, a key focus for both investors and management. The potential for AI to drive incremental net adds and wallet share gains will be closely watched at the upcoming MAX Creativity Conference scheduled for October 10, 2023.

In Q3 2023, Adobe beat expectations with an EPS of $4.09, surpassing the Zacks Consensus Estimate of $3.97 and showing a significant increase of 20.3% compared to Q3 2022's $3.40. The company also reported revenues of $4.89 billion, roughly in line with the Zacks Consensus Estimate and representing a 10.4% increase over Q3 2022's $4.43 billion.

Looking ahead to Q4 2023, management provided guidance of an EPS range between $4.10 and $4.15, along with a revenue range of $4.98 billion to $5.03 billion. CEO Shantanu Narayen expressed enthusiasm for the company's AI-enhanced creativity, citing recent launches such as Firefly, Express, Creative Cloud, and GenStudio, which make Adobe's magic accessible to millions of users.

Other analysts updated their ratings on ADBE on September 15, 2023. Citigroup's Tyler Radke raised their price target by 7% to $570 and maintained a Hold rating on the stock. Baird's Rob Oliver also increased their price target by 8% to $500 and maintained a Hold rating. Barclays's Saket Kalia lifted their price target by 3.2% to $620 and maintained a Hold rating.

Currently, 66.7% of top-rated analysts rate ADBE as a Strong Buy or Buy, while 33.3% consider it a Hold. None of the analysts recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that ADBE's upcoming year will deliver earnings per share (EPS) of $12.87. If these projections hold true, ADBE's next yearly EPS will experience a year-over-year increase of 22.5%.

Since the release of Adobe's latest quarterly report on September 14, 2023, the stock price has declined by 4.2%. However, on a year-over-year basis, the stock has seen a substantial increase of 71.1%. During this period, ADBE has outperformed the S&P 500, which has risen by 14.1%.

Parker Lane, the Stifel Nicolaus analyst who updated the price target, is ranked in the bottom 4% out of 4,329 Wall Street analysts by WallStreetZen. They have an average return of -21.6% and a win rate of 22.6%. Lane specializes in the Communication Services and Technology sectors.

Adobe Inc., formerly known as Adobe Systems Incorporated, is a global software company headquartered in San Jose, California. The company operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. Its products and services cater to content creators, marketers, advertisers, agencies, publishers, merchants, analysts, developers, and executives across various industries. Adobe's flagship product, Creative Cloud, offers a subscription service that grants access to a range of creative tools. The company also provides integrated platforms and applications for creating, managing, executing, measuring, monetizing, and optimizing customer experiences. Additionally, Adobe offers publishing and advertising solutions, including e-learning, technical document publishing, web conferencing, web application development, and high-end printing services. Adobe's products and services are distributed through a network of sales channels, distributors, resellers, and online platforms.

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