Adobe (ADBE) PT Raised to $660 at Bernstein SocGen Group
Bernstein SocGen Group analyst Mark Moerdler raised the price target on Adobe (NASDAQ: ADBE) to $660.00 (from $653.00) while maintaining a Outperform rating.
The analyst comments "Adobe had a good quarter with beats on all major metrics, full-year guidance raises, and the stock subsequently up over 15% in the aftermarket. The street was especially pleased with beat in net new ARR for two reasons. Firstly, it indicates that Adobe is not being impacted by competitive AI-driven technology threats, which takes the pressure off what has been an important concern amongst investors. Secondly, the guidance raise shows that they are not seeing and feeling the macro problems that some other software companies have reported in this quarter, such as Salesforce and Workday — both of which reduced forward guidance. It is important to note that part of the strength in reaction is due to the fact that Adobe’s stock had been down 23% YTD going into the quarter and the massively depressed multiple. Combined with the nervousness that had been created by some other recent software company earnings, it makes sense that the stock was up so much. Earlier this week (Link), Oracle’s stock was also rewarded after an earnings in which they initiated strong guidance. A high quality name, Adobe’s net new ARR number and strong management commentary on the call and callback were very welcome for investors."