After Argus Research and Credit Suisse gave Adobe (NASDAQ: ADBE) a Buy rating last month, the company received another Buy, this time from KeyBanc. Analyst Brent Bracelin maintained a Buy rating on Adobe yesterday and set a price target of $286. The company’s shares closed yesterday at $238.01.
Bracelin observed:
“We remain impressed by the continued strength within Adobe’s flagship segment, Creative Cloud, that has more than doubled in three years to a $5.6B ARR business. Several new AI-powered features coupled with an expanding product portfolio suggest the durability of growth could remain above 20% for the next couple years, particularly given future upsell and pricing levers. Outlines $108B TAM opportunity at the financial analyst day. Management outlined a large TAM looking out to 2021 that could reach $108B, which also embeds the markets associated with the two most recent acquisitions, Marketo and Magento. This compares to the 2020 TAM it outlined last year of $83B. While the largest opportunity for share gain potential sits outside of the Creative Cloud, we are encouraged by Adobe’s increasing M&A appetite to strengthen its competitive footing across a fragmented marketing stack.”
According to TipRanks.com, Bracelin is a top 25 analyst with an average return of 20.8% and a 71.4% success rate. Bracelin covers the Technology sector, focusing on stocks such as Tyler Technologies, Salesforce.com, and Everbridge Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Adobe with a $292.43 average price target, representing a 22.9% upside. In a report issued on October 10, Credit Suisse also maintained a Buy rating on the stock with a $300 price target.
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Adobe’s market cap is currently $121.7B and has a P/E ratio of 49.18. The company has a Price to Book ratio of 13.13.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ADBE in relation to earlier this year.
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