Mizuho Reiterates Outperform Rating on Adobe (ADBE)
Mizuho analyst Gregg Moskowitz reiterated an Outperform rating and $390.00 price target on Adobe (NASDAQ: ADBE).
The analyst comments "ADBE reported a solid F4Q as Digital Media ARR grew 11.5% Y/Y CC, modestly above the Street's ~11.2% CC estimate. Additionally, total revenue of $6.19B was nicely ahead of the Street's $6.11B forecast. The one positive surprise to our expectations was a FY26 outlook that reflected 10.2% organic Total ARR growth, modestly above our +9.5% target. ADBE's full-year revenue guide was similarly a little better than consensus. More broadly, ADBE has been an incredibly frustrating stock for most of the last 12 months. While we struggle to identify a near-term catalyst, ADBE is beginning to meaningfully monetize its Generative AI innovations, and despite tough competition and ongoing macro uncertainty we believe ADBE can indeed grow total organic ARR above 10% next year. Finally, with ADBE trading at only ~12x CY27E FCF, we find valuation quite attractive. We reiterate our Outperform rating and $390 PT."
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Shares of Adobe closed at $343.13 yesterday.