Adobe (ADBE) PT Lowered to $575 at Mizuho
Mizuho analyst Gregg Moskowitz lowered the price target on Adobe (NASDAQ: ADBE) to $575.00 (from $620.00) while maintaining a Outperform rating.
The analyst comments "ADBE reported a solid F1Q as Digital Media ARR growth of 12.6% Y/Y CC was modestly above consensus. Meanwhile, total revenue of $5.71B was well above the Street's $5.66B estimate, and ADBE reiterated FY25 guidance as we had expected. That said, ADBE is no longer breaking out Creative Cloud and Document Cloud. ADBE has been a frustrating stock for much of FY24. Having said that, today's disclosures indicate that ADBE is beginning to meaningfully monetize its Generative AI innovations, and we continue to expect solid upside to the FY25 ARR/revenue guidance as the year unfolds. Moreover, at only ~17.5x CY26E FCF, valuation looks very attractive to us. While we lower our PT to $575 (from $620) due to comp multiple compression and a quarter that was a bit less clean than hoped, we reiterate our Outperform rating, and ADBE remains one of our top picks over the next 12 months."