
Adobe (ADBE) Stock Forecast & Price Target
Adobe (ADBE) Analyst Ratings
Bulls say
Adobe's financial performance demonstrates a strong upward trajectory across its business segments, with total revenue for the most recent quarter reaching $5.71 billion, which reflects a 10% year-over-year increase and surpasses consensus estimates. The Digital Media segment, crucial to Adobe's growth, reported revenue of $4.23 billion, up 11% year-over-year, benefiting from both steady subscription growth in the Creative and Marketing Professionals Group and Business Professionals and Consumers Group. Furthermore, the company's guidance for fiscal year 2025 indicates continued revenue growth, with total revenue expected between $23.30 billion and $23.55 billion, aligning with market expectations and highlighting Adobe's robust market positioning and operational momentum.
Bears say
The analysis indicates a negative outlook for Adobe's stock, underscored by flat full-year operating margin expectations of 46% and a projected decline to 45% for the second quarter, indicating potential challenges in maintaining profitability. Additionally, a sequential decline in total Remaining Performance Obligations (RPO) by $270 million and a bookings decrease of 2.0% further highlight the company's struggles in revenue generation. Moreover, competition in the digital media sector and economic uncertainties may exert further pricing pressure, exacerbating the slower growth rate relative to peers, which is reflected in the lower median multiple of 30x for free cash flow in relation to large-cap technology companies.
This aggregate rating is based on analysts' research of Adobe and is not a guaranteed prediction by Public.com or investment advice.
Adobe (ADBE) Analyst Forecast & Price Prediction
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