Adobe (ADBE) PT Raised to $295 at Barclays

Barclays analyst Saket Kalia raised the price target on Adobe (NASDAQ: ADBE) to $295.00 (from $250.00) while maintaining a Equalweight rating.

The analyst comments: “Four key points into ADBE's 3Q: (1) we are modelling $400M in 3Q NNARR, which is down q/q because the greater freemium mix, but we think this quarter sets up well because of strong web traffic/app downloads and some lingering pricing benefit, so we wonder if an upside case could be $420M+; (2) we model 4Q26 NNARR of $770M which contemplates a 40/60 split between 3Q/4Q – remember we expect little if any pricing benefit in 4Q (it laps in 3Q), so the 4Q uptick comes from seasonal enterprise strength and changing traffic patterns, which seem strong so far but tough to underwrite; (3) looking at FY27, we are lower than the street’s $2.34B in NNARR because if adjusted for ~$480M in Semrush contribution, ~$250M in illustrative pricing benefit, and FY27's 53rd week, Street would be modelling 20%+ y/y growth in underlying NNARR - on top of this, remember a new CEO/CFO may want to set this more conservatively to start; and (4) while we do not have any insight, we wonder if logistically it makes sense for ADBE to announce a new CEO this quarter as we approach FY27 planning and Adobe MAX timing. Our PT goes up to $295 based on ~11x FY27 EPS.”

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