In a report released today, Brian Schwartz from Oppenheimer maintained a Hold rating on Adobe (ADBE – Research Report). The company’s shares closed yesterday at $267.69, close to its 52-week high of $277.61.
“Adobe’s business had a good F1Q with results ahead of consensus estimates offset by lackluster, but likely appropriate guidance for diminishing estimate risks. Positively, the company beat on operating margin, which is a good data point suggesting that management is effectively integrating the operations of Marketo and Magento, and supports the EPS power story. On balance, the quarterly beats are moderating and coupled with the recent senior leadership changes and a larger company M&A appetite may present hurdles for new investors. Nevertheless, this is no thesis changer, and the upside in the quarter suggests that the digital transformation bull case on Adobe remains intact. Bottom Line: Although we remain positive on Adobe’s fundamentals and good execution trend, we rate ADBE at Perform on valuation.”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 28.4% and a 77.3% success rate. Schwartz covers the Technology sector, focusing on stocks such as Instructure Inc, Salesforce.com, and MiX Telematics.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Adobe with a $267.38 average price target, implying a -0.1% downside from current levels. In a report issued on March 12, Cowen & Co. also reiterated a Hold rating on the stock with a $280 price target.
Adobe’s market cap is currently $130.5B and has a P/E ratio of 51.38. The company has a Price to Book ratio of 13.94.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is negative on the stock.
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