Publish date:

Adobe Price Targets Raised After Stronger-Than-Expected Earnings

Adobe price targets were raised after its quarterly report: RBC Capital Markets to $650, BMO to $630 and Morgan Stanley to $610.
Author:

Adobe  (ADBE) - Get Report shares rose on Friday as several analysts raised their price targets after the software company reported quarterly results that topped expectations.

The stock recently traded at $565.85, up 2.6%. It has moved up 22% in the past three months amid strong demand.

The San Jose, Calif., company reported profit of $3.03 a share on revenue of $3.84 billion. Analysts surveyed by FactSet were expecting profit of $2.81 a share on revenue of $3.73 billion.

As for the analysts, Matthew Hedberg of RBC Capital Markets lifted his price target to $650 from $575, affirming an outperform rating.

The earnings report is another buoyant one, showing strength throughout Adobe’s product portfolio, geographies and customer segments, he said, according to Bloomberg.

Digital transformation is a trend with “staying power” and so is content creation, Hedberg said.

TheStreet Recommends

Keith Bachman of BMO Capital Markets boosted his price target to $630 from $585, sustaining his outperform rating.

The earnings report produced multiple “very positive metrics,” with new recurring revenue rising “meaningfully,” he said, according to Bloomberg. Also, the Experience Cloud shows growth improving, he said

Morgan Stanley increased its price target to $610 from $575, reiterating an overweight rating.

The earnings results “well illustrate why the stock sits atop the list of [growth at a reasonable price] software names we find very attractive,” Morgan Stanley analysts said.

The Digital Media unit “shows building momentum in Adobe’s core earnings engine,” they said.

In March, Adobe also reported results that topped estimates. It reported revenue of $3.91 billion, reflecting a 26% year-over-year increase.