Shares of software maker
were falling early Friday after the company beat Wall Street’s expectations for both earnings and guidance.
Adobe (ticker: ADBE) Chief Financial Officer Dan Durn said in an interview with Barron’s that it was “a blowout quarter.” The company earlier this year launched its Firefly suite of tools that harness artificial intelligence, and that’s starting to pay off. It also managed to raise subscription prices.
So what’s not to love? D.A. Davidson analyst Gil Luria noted that Adobe is executing on all fronts, but he kept his Neutral rating on the stock with a price target of $500. Shares slipped 4% to $530.37 early Friday after closing down Thursday.
“The near-term upside is largely captured in the current stock price,” Luria wrote. Shares have gained 76% over the past year.
Other analysts are still bullish. RBC Capital Markets gives the shares an Outperform rating with a $615 price target. Evercore ISI’s price target is $590.
Mizuho analysts, led by Gregg Moskowitz, maintained their buy rating with a $630 price target after the results.
“Adobe remains very well positioned to benefit from digital transformation with its highly comprehensive end-to-end offering,” they said. “We have rising confidence in GenAI as a significant growth driver.”
Write to Brian Swint at firstname.lastname@example.org