Adobe (ADBE) PT Lowered to $540 at UBS, 'Creative ARR Falls Short � Take Two'
(Updated - March 15, 2024 4:53 AM EDT)
UBS analyst Karl Keirstead lowered the price target on Adobe (NASDAQ: ADBE) to $540.00 (from $600.00) while maintaining a Neutral rating.
The analyst comments "Adobe reported a second straight expectations miss in its core Creative segment that has the stock -10% in the after-market, but we’d argue that this one is worse than 3 months ago. While the 4Q/Nov ARR guidance miss was due to a lack of disclosure about – and hence over-modeling – the magnitude of the recent Creative price increase, this quarter the Creative ARR result ($289m, -6% y/y and a mile below our below-Street $325m estimate) is raising questions about potential secular pressures in Adobe’s core business. We don’t mind remaining on the sidelines with a Neutral rating."