Adobe (ADBE) PT Raised to $536 at HSBC
HSBC analyst Stephen Bersey raised the price target on Adobe (NASDAQ: ADBE) to $536.00 (from $519.00) while maintaining a Hold rating.
The analyst comments: "Adobe's 4QFY24 revenue guidance implies 9.4% y-o-y growth (at the mid-point), which looks weaker compared to 10-12%-plus y-o-y growth achieved in the last five quarters. Revenue guidance fell short of consensus expectations by 1.3%. We think the Street will likely be disappointed by relatively weak digital media net new ARR guidance, which points to a 5% y-o-y decline. Non-GAAP EPS guidance (at the mid-point) was in-line with consensus. Adobe is in the early stages of rolling out and monetizing the AI features of its products. We think it is difficult to assess the level of Adobe's AI monetization and question its staying power. The competitive landscape in the creative space is also dynamically evolving as various new players launch AI-enabled products. Heightened competition also poses a risk that these products get commoditized quickly. We, therefore, take a cautious approach and keep a close eye on the evolving competitive landscape and await more reliable signs of the company's AI monetization."