Adobe (ADBE) Receives a Rating Update from a Top Analyst


In a report released today, Brian Schwartz from Oppenheimer maintained a Hold rating on Adobe (ADBE). The company’s shares closed yesterday at $248.08.

Schwartz noted:

“Adobe’s business remained strong in its F4Q with results mostly ahead of consensus estimates. On balance, the Marketo acquisition integration expenses and negative FX cause a downward revision to EPS guidance, but it does not impair the EPS power story. First, the new EPS guidance will be updated next quarter to ASC 606, and SaaS companies have been using the ASC 606 rule as an accounting playground in 2018 to boost company margins. Second, the Marketo opex needs are no longer unknown and now priced in. Adobe’s F4Q results lend support to our view and survey report that indicated enterprise adoption of SaaS is picking up, driven by rearchitecting for cloud services and digital transformation, and despite the macro uncertainties. Maintain Perform on valuation.”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 25.0% and a 73.7% success rate. Schwartz covers the Technology sector, focusing on stocks such as Ultimate Software, Instructure Inc, and Salesforce.com.

Adobe has an analyst consensus of Moderate Buy, with a price target consensus of $293.44.

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Adobe’s market cap is currently $121.3B and has a P/E ratio of 51.26. The company has a Price to Book ratio of 13.69.

Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is neutral on the stock.

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