Impressive Upside in Adobe's Digital Media Segment, Analyst Says

By Don Francis, Editor
September 16, 2023 11:21 AM UTC
Impressive Upside in Adobe's Digital Media Segment, Analyst Says

TD Cowen's J. Derrick Wood raised their price target on Adobe (NASDAQ: ADBE) by 5% from $600 to $630 on 2023/09/15. The analyst maintained their Buy rating on the stock.

Wood's optimistic outlook on Adobe's Digital Media segment was highlighted in their note assessing the company's Q3 2023 performance. According to Wood, the upside in this segment was "impressive," and they characterized Adobe as "an obvious AI winner." The analyst's assessment comes on the heels of Adobe's recent launch of four new generative AI products after a six-month beta testing period.

Wood was not the only analyst to update their rating and price target for Adobe on September 15, 2023. Citigroup's Tyler Radke raised their price target by 7% from $570 and maintained their Hold rating on the stock. Baird's Rob Oliver also raised their price target by 8% from $500 and maintained their Hold rating. Barclays's Saket Kalia raised their price target by 3.2% from $620 and also maintained their Hold rating.

Overall, 66.7% of top-rated analysts currently rate Adobe as a Strong Buy or Buy, while 33.3% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

Looking ahead, analysts forecast that Adobe's upcoming year will deliver earnings per share (EPS) of $12.87. If these predictions hold true, Adobe's next yearly EPS will be up by 22.5% on a year-over-year basis.

In terms of stock performance, Adobe's shares have experienced a 4.2% decline since the company's latest quarterly report on September 14, 2023. However, when compared to the same period last year, the stock is up a remarkable 71.1%. Adobe's performance has outpaced the S&P 500, which has seen a 14.1% increase during the same timeframe.

J. Derrick Wood, the TD Cowen analyst who provided the updated rating and price target, is ranked in the top 2% of Wall Street analysts by WallStreetZen. With an average return of 16.9% and a win rate of 62.3%, Wood specializes in the Communication Services and Technology sectors.

Adobe Inc. operates as a diversified software company with a global presence. The company operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. Its Digital Media segment offers products, services, and solutions that empower individuals, teams, and enterprises to create, publish, and promote content. Adobe's flagship product is Creative Cloud, a subscription service that provides access to various creative products. The Digital Experience segment provides an integrated platform and applications to help brands and businesses create, manage, execute, measure, monetize, and optimize customer experiences. The Publishing and Advertising segment offers a range of products and services, including e-learning solutions, technical document publishing, web conferencing, and high-end printing, as well as Advertising Cloud offerings. Adobe distributes its products and services directly to enterprise customers through its sales force, field offices, app stores, and website. Additionally, the company partners with distributors, value-added resellers, systems integrators, and other channels to reach end users. Headquartered in San Jose, California, Adobe Inc. was founded in 1982.

What is the price target for ADBE?

WallStreetZen tracks the performance of nearly 4,000 Wall Street analysts, whom we rank by average returns, frequency, and win-rate (backtested over multiple years).

Create a free watchlist and be the first to know when top-rated Wall Street analysts revise their Adobe stock forecasts and price targets on WallStreetZen.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.

WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.