UPDATE: BofA Securities Downgrades Adobe (ADBE) to Neutral
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BofA Securities analyst Brad Sills downgraded Adobe (NASDAQ: ADBE) from Buy to Neutral with a price target of $350.00 (from $450.00).
The analyst comments "Adobe reported largely in line Q3 results and Q4 outlook. Total rev of $4.43bn (+13% y/y) was ahead of our $4.34bn, with DM/DX of $3.23bn (+13% y/y)/$1.12bn (+14% y/y) landing above our $3.16bn/$1.11bn, respectively. Digital Media ARR of $13.40bn (+15% y/y) compared to our $13.40bn. Q4 Net new DM ARR guide of $550mn fell just shy of the prev implied $558mn, likely due to incremental FX headwinds and a deteriorating macro. EPS of $3.40 exceeded our $3.33 from rev upside and better OpM of 44.1% (vs. our 43.9%). Guidance for Q4 rev of $4.52bn (+10% y/y) was below our $4.58bn, with DM/DX y/y growth of 10%/13% comparing to our prior 12%/12%. Q4 EPS guidance of $3.50 exceeded our $3.45. The co. announced the proposed acquisition of collaborative design provider Figma for $20bn (50% cash/50% stock, representing 50x expected C22 $200mn ARR (+100% y/y), with an add’l 6mn RSUs for employee retention over 4 yrs."
Shares of Adobe closed at $309.13 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades, Hot Downgrades
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