BMO Capital Markets Has Lowered Expectations for Adobe (NASDAQ:ADBE) Stock Price

Adobe (NASDAQ:ADBE) had its target price dropped by analysts at BMO Capital Markets from $450.00 to $405.00 in a research report issued to clients and investors on Friday, Marketbeat.com reports. The firm presently has an “outperform” rating on the software company’s stock. BMO Capital Markets’ price target would suggest a potential upside of 15.93% from the company’s current price.

A number of other brokerages have also recently commented on ADBE. Stifel Nicolaus lowered their price objective on shares of Adobe from $525.00 to $480.00 and set a “buy” rating on the stock in a research note on Friday, June 13th. Mizuho lowered their price objective on shares of Adobe from $530.00 to $460.00 and set an “outperform” rating on the stock in a research note on Monday, September 8th. Phillip Securities raised shares of Adobe from a “moderate sell” rating to a “strong-buy” rating in a research note on Monday, June 16th. Redburn Atlantic cut shares of Adobe from a “hold” rating to a “strong sell” rating and decreased their price target for the stock from $420.00 to $280.00 in a research note on Wednesday, July 2nd. Finally, UBS Group decreased their price target on shares of Adobe from $430.00 to $400.00 and set a “neutral” rating on the stock in a research note on Friday, August 29th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Adobe presently has a consensus rating of “Moderate Buy” and a consensus price target of $435.63.

Adobe Stock Performance

NASDAQ:ADBE opened at $349.36 on Friday. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.54. Adobe has a fifty-two week low of $330.04 and a fifty-two week high of $557.90. The stock has a market cap of $148.20 billion, a PE ratio of 21.77, a price-to-earnings-growth ratio of 1.66 and a beta of 1.48. The firm’s fifty day simple moving average is $357.32 and its 200-day simple moving average is $379.37.

Adobe (NASDAQ:ADBE) last posted its quarterly earnings results on Thursday, September 11th. The software company reported $5.31 earnings per share for the quarter, topping analysts’ consensus estimates of $5.18 by $0.13. The business had revenue of $5.99 billion for the quarter, compared to analysts’ expectations of $5.91 billion. Adobe had a net margin of 30.01% and a return on equity of 56.30%. The business’s revenue for the quarter was up 10.7% on a year-over-year basis. During the same period in the prior year, the company posted $4.65 EPS. Adobe has set its FY 2025 guidance at 20.800-20.850 EPS. Q4 2025 guidance at 5.350-5.400 EPS. Analysts expect that Adobe will post 16.65 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. WT Wealth Management purchased a new position in shares of Adobe during the 2nd quarter worth about $1,632,000. Troy Asset Management Ltd lifted its position in Adobe by 10.1% during the second quarter. Troy Asset Management Ltd now owns 525,265 shares of the software company’s stock valued at $203,215,000 after buying an additional 48,149 shares in the last quarter. American Trust grew its stake in Adobe by 7.8% during the second quarter. American Trust now owns 3,019 shares of the software company’s stock worth $1,168,000 after buying an additional 219 shares during the period. Total Investment Management Inc. acquired a new stake in shares of Adobe in the second quarter worth $35,000. Finally, Centaurus Financial Inc. raised its stake in shares of Adobe by 5.8% in the 2nd quarter. Centaurus Financial Inc. now owns 4,482 shares of the software company’s stock valued at $1,734,000 after acquiring an additional 245 shares during the period. 81.79% of the stock is currently owned by hedge funds and other institutional investors.

Adobe Company Profile

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.