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Adobe pullbacks should be seen as buying opportunities, says Morgan Stanley. Morgan Stanley analyst Keith Weiss said Adobe's Q4 outperformance in Digital Media and an increase in its FY19 guidance for net new ARR should trump any near-term concerns about higher M&A dilution. He recommends using any material pullbacks in the stock as a buying opportunity, though he keeps an Equal Weight rating on Adobe shares.

Adobe initial FY19 outlook points to strong momentum, says Stifel. Stifel analyst Tom Roderick said he believes Adobe's initial outlook for FY19 points to strong momentum in execution against core initiatives despite some "optical headwinds" related to currency and purchase accounting. The analyst, who still sees Adobe being set up for a strong FY19, keeps a Buy rating and $325 price target on the shares following the company's Q4 earnings report.

Adobe valuation reasonable barring recession, says Canaccord. Canaccord analyst Richard Davis said he believes marketing technology companies such as Adobe (ADBE) could "feel the pinch" if a recession hits, but notes that the firm's macro work does not suggest that to be imminent. Despite headlines implying otherwise, Adobe's Q4 results were strong and topped expectations across the board excluding the financial impact of Marketo, contends Davis, who thinks the company, working in partnership with Microsoft (MSFT), will begin to win a greater share of marketing digital transformation contracts. However, he also sees it being at least 24 months until those wins have the potential to be material. Following Adobe's report, Davis maintains a Buy rating and $290 price target on the shares.

Adobe price target cut to $282 from $286 at KeyBanc. KeyBanc analyst Brent Bracelin maintained an Overweight rating on Adobe but lowered his price target to $282 from $286 following last night's Q4 results. In a research note to investors, Bracelin says he was "impressed" by the strong free cash flow profile of Marketo that exceeded $1B for the first time in a given quarter, but lowered his FY19 EPS estimate by 5c and free cash flow estimate by $307M as the company invests in two acquisitions that could temporarily pressure the operating margins for 1H19 on purchase accounting.