DA Davidson Reaffirms “Buy” Rating for Adobe (NASDAQ:ADBE)

Adobe (NASDAQ:ADBE)‘s stock had its “buy” rating restated by stock analysts at DA Davidson in a report issued on Friday,Benzinga reports. They currently have a $500.00 target price on the software company’s stock. DA Davidson’s price target indicates a potential upside of 43.12% from the company’s current price. DA Davidson also issued estimates for Adobe’s Q4 2025 earnings at $4.41 EPS, FY2025 earnings at $17.11 EPS and FY2026 earnings at $19.60 EPS.

A number of other research firms also recently commented on ADBE. Rothschild & Co Redburn downgraded Adobe from a “neutral” rating to a “sell” rating and set a $280.00 target price on the stock. in a research report on Wednesday, July 2nd. Oppenheimer cut their price target on Adobe from $500.00 to $460.00 and set an “outperform” rating for the company in a report on Tuesday, September 9th. Citigroup cut their price target on Adobe from $450.00 to $400.00 and set a “neutral” rating for the company in a report on Thursday. BMO Capital Markets cut their price target on Adobe from $450.00 to $405.00 and set an “outperform” rating for the company in a report on Friday. Finally, Evercore ISI cut their price target on Adobe from $475.00 to $450.00 and set an “outperform” rating for the company in a report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eight have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Adobe presently has an average rating of “Moderate Buy” and a consensus target price of $435.63.

Adobe Stock Down 0.3%

ADBE opened at $349.36 on Friday. The business’s fifty day moving average is $357.32 and its two-hundred day moving average is $379.37. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.99 and a current ratio of 0.99. The company has a market cap of $148.20 billion, a price-to-earnings ratio of 21.77, a PEG ratio of 1.66 and a beta of 1.48. Adobe has a one year low of $330.04 and a one year high of $557.90.

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

Institutional Investors Weigh In On Adobe

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Copia Wealth Management acquired a new stake in Adobe during the fourth quarter worth about $28,000. SWAN Capital LLC acquired a new stake in Adobe during the fourth quarter worth about $28,000. 1248 Management LLC acquired a new stake in Adobe during the first quarter worth about $25,000. Barnes Dennig Private Wealth Management LLC acquired a new stake in Adobe during the first quarter worth about $26,000. Finally, LSV Asset Management increased its stake in Adobe by 350.0% during the second quarter. LSV Asset Management now owns 72 shares of the software company’s stock worth $28,000 after acquiring an additional 56 shares during the last quarter. 81.79% of the stock is currently owned by institutional investors and hedge funds.

About Adobe

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.